RCBarker Makes Purchasing Decisions for His Company

question 118

Multiple Choice

R.C.Barker makes purchasing decisions for his company.One product that he buys costs $50 per unit when the order quantity is less than 500.When the quantity ordered is 500 or more, the price per unit drops to $48.The ordering cost is $30 per order and the annual demand is 7,500 units.The holding cost is 10 percent of the purchase cost.If R.C.orders 500 units each time he places an order, what would the total annual holding cost be?

• A)$450
• B)$1,200
• C)$1,250
• D)$2,400

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Definitions:

Interview

An interview is a conversation where questions are asked and answers are given, often used for evaluative purposes such as job hiring.

Internal Factors

Elements within a company that influence its ability to achieve its goals, including staff morale, organizational culture, and internal policies.

Job Search

A job search is the process of looking for employment, through various means such as online job boards, networking, or direct application to companies.

Thank-You Message

A communication expressed to show gratitude or appreciation towards someone for their actions, help, or considerations.