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Globe Inc. is a distributor of DVDs. DVD Mart is a local retail outlet which...

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Accounting

Globe Inc. is a distributor of DVDs. DVD Mart is a local retail outlet which sells blank and recorded DVDs. DVD Mart purchases DVDs from Globe at $29 perDVD; DVDs are shipped in packages of 66. Globe pays all incomingfreight, and DVD Mart does not inspect the DVDs due toGlobe's reputation for high quality. Annual demand is 319,000 DVDs at a rate of 6,700 DVDs per week. DVD Mart earns 14% on its cash investments. The purchaseorder lead time is one week. The following cost data areavailable:

Relevant ordering costs per purchase order$114.50

Carrying costs per package peryear:

Relevantinsurance, materialshandling, breakage,etc., per year $6.50

What are the relevant totalcosts?

Answer: $17,429

How do we get that answer, can someone help me by showing your work? Thank you, much appreciated.

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