RCBarker Makes Purchasing Decisions for His Company

question 101

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
• E)None of the above

---

Definitions:

Hull House

An iconic settlement house founded by Jane Addams and Ellen Gates Starr in Chicago in 1889, aimed at improving the lives of the community's immigrant population.

Americanize

The process of assimilating or causing someone to assimilate into American culture and norms.

Eugenics

A set of beliefs and practices aimed at improving the genetic quality of the human population, historically associated with morally problematic policies like forced sterilization.

Genetic Modification

The process of altering the genetic material of an organism in a way that does not occur naturally, through genetic engineering technologies.