A Local Club Is Selling Christmas Trees and Deciding How

question 124

Multiple Choice

A local club is selling Christmas trees and deciding how many to stock for the month of December.If demand is normally distributed with a mean of 100 and standard deviation of 20,trees have no salvage value at the end of the month,trees cost $20,and trees sell for $50 what is the service level?

• A).60
• B).20
• C).84
• D).40
• E)unable to determine given the above information

---

Definitions:

Straight-Line Depreciation

A calculation for distributing the expense of a tangible asset over its lifespan in uniform annual payments.

Research and Development

The investigative activities a business conducts to improve existing products and procedures or to lead to the development of new products and procedures.

Liquidity

The straightforward process of converting an asset to cash without any effect on its market price.