Approximate total ordering cost

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Reference no: EM13258170

Sarah's computer Citysells 5,000 boxes of CD-RW compact discs per year. She determined that she pays $50 to process an order for discs. Her purchase price is $6 for each box of discs and she has determined that storage costs for one year are 25 percent of thepurchase price. What is her approximate total ordering cost?

(a) $865.

(b) $611.

(d) $87.

(e) $43.

Reference no: EM13258170

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