RCBarker Makes Purchasing Decisions for His Company

question 40

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.How many units should R.C.order to minimize his total annual inventory cost? (Round your answer to the nearest unit.)

• A)300
• B)306
• C)500
• D)200

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Definitions:

Public Announcement

An official statement released to the general public from a company or organization.

Responsibilities

Duties or obligations that an individual or entity is bound to perform or uphold, which may be legal, ethical, or moral in nature.

Registration Statement

A document submitted to a regulatory authority, detailing the securities being offered for sale to the public, including financial and management information.

Securities and Exchange Commission

A U.S. federal agency that oversees and enforces federal securities laws to protect investors and maintain fair, orderly, and efficient markets.