Warehouse Sports, a large box store retailer of athletic shoes, orders 200,000 shoes per year from its manufacturer
If Warehouse Sports orders 10,000 shoes in each order, and spends $10,000 in total annual ordering costs, what is the cost of ordering and delivery per order?
A) $2,000
B) $500
C) $50
D) There is not enough information to answer this question.
Answer: B
Explanation: B) 200,000 shoes /10,000 shoes per order = 20 orders. $10,000 ordering costs/20 orders = $500 per order.
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