Very Technical is a firm that sells computing equipment. It costs Very Technical $150 for each order of computer monitors and the variable cost of placing an order is $10 per monitor. If Very Technical sells 5,000 computer monitors a year and they order 250 monitors, what is the annual ordering cost of the monitors?
A) $110,000
B) $67,000
C) $85,250
D) $53,000
D) $53,000
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If a firm facing a perfectly elastic demand curve raises its price,
a. it will still sell exactly the same amount of output as it did at the lower price b. it will lose some, but not all, of its sales c. its sales will decrease to zero d. its sales will increase e. it is impossible to predict what will happen to its sales
If international trade is restricted by the government:
a. domestic consumers are benefited. b. domestic producers are adversely affected. c. consumers in the importing country are required to pay higher prices for the goods. d. consumers can access to better quality product at lower prices. e. the resources are allocated to their highest paid uses.
Real GDP per person in Westland is $30,000, while real GDP in Eastland is $10,000, Westland's real GDP per person is growing at 3 percent per year and Eastland's real GDP per person is growing at 3 percent per year. If these growth rates persist indefinitely, then:
A. Eastland's real GDP per person will always be exactly $20,000 less than Westland's. B. Eastland's real GDP per person will eventually be greater than Westland's. C. Westland's real GDP per person will always be at least $20,000 greater than Eastland's. D. Eastland's real GDP per person will rise until it equals Westland's real GDP per person.
One way to reduce exports is to
A) base trade on comparative advantage. B) base trade on opportunity costs. C) trade with poor countries. D) restrict imports.