A Company Annually Consumes 10,000 Units of Part

question 104

Multiple Choice

A company annually consumes 10,000 units of Part
C The carrying cost of this part is $2 per year and the ordering costs are $100.The company uses an order quantity of 500 units.By how much could the company reduce its total costs if it purchased the economic order quantity instead of 500 units?

• A)$500
• B)$2,000
• C)$2,500
• D)$0

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Definitions:

Cooperative Group

A team or group that works collectively towards common goals or objectives, often emphasizing mutual help and collaboration.

Motivating Employees

Strategies and practices aimed at encouraging employees to perform their best through incentives, recognition, and support.

Western Society

Refers to the societies found in Western Europe, North America, and other places influenced by their cultural, legal, and ethical systems.

Permanent-Irreducible

Permanent-irreducible refers to a condition or state that cannot be simplified, reduced, or removed, often implying a fundamental or essential characteristic.