Question: please answer question 5 For Questions 4, 5, 6 and 7, use the following information: Prefab, a furniture manufacturer, uses 20,000 square feet of plywood
please answer question 5
For Questions 4, 5, 6 and 7, use the following information: Prefab, a furniture manufacturer, uses 20,000 square feet of plywood per year, 12 months per year. Its trucking company charges Prefab $400 per shipment, independent of the quantity purchased, The manufacturer offers an all unit quantity discount with a price of $1 per square foot for orders 5,000 or under $0.96 per square foot for orders larger than 5,000 square feet but not larger than 10,000 square feet, and $0.94 per square foot for orders larger than 10,000 square feet. Prefab incurs a holding cost of 20 percent. > Question 5 What is the annual cost of such a policy? O Between $2,000 and $25,000 Between $25,000 and $28,000 Less than $20,000 O More than $28,000 Between $20,000 and $22,000

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