What are the relevant total costs


Green Grass Incorporated is a distributor of golf balls. Garry's golf supplies is a local retail outlet which sells golf balls. Garry purchases the golf balls from green grass incorported at $.75 per ball; the golf balls are shipped in carton of 72. Green grass Inc. pays all incoming freigt, and Garry's golf supplies does not inspect the balls due to green grass' reputation for hight quality. Annual demand is $172,800 golf balls at a rate of 3,322 balls per week. Garry's Golf supplies earns 12% on its cash investments. The purchase order lead time is one week. The following cost date are availabe. If Garry's makes an order (1/12 annual demand) once per month, what are the relevant total costs?

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Accounting Basics: What are the relevant total costs
Reference No:- TGS065132

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