RCBarker Makes Purchasing Decisions for His Company

question 135

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.wishes to minimize his total annual inventory costs, he must evaluate the total cost for two possible order quantities.What are these two possible quantities? (Round answer to nearest unit.)

• A)300 and 306
• B)300 and 500
• C)306 and 50
• D)200 and 306

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Definitions:

Equilibrium

A state in a chemical reaction where the rates of the forward and reverse reactions are equal, leading to no net change in the concentrations of reactants and products.

Aldol Condensation

A chemical reaction that combines two aldehyde or ketone molecules to form a larger β-hydroxyketone, followed typically by dehydration to yield a conjugated enone.

Claisen Condensation

A carbon-carbon bond forming reaction between two esters or one ester and another carbonyl compound in the presence of a strong base.

Michael Addition

A nucleophilic addition of a carbanion to an α,β-unsaturated carbonyl compound resulting in a carbon-carbon bond formation.