A Firm Has the Following Gross Requirements for Item F

question 11

Multiple Choice

A firm has the following gross requirements for Item F.If ordering costs are $60 per order and carrying costs are $0.50 per period. If EOQ lot sizing is used to set the minimum order quantity,then the planned order releases would be

• A)40 in period 1 and 0 in period 3.
• B)0 in period 2 and 80 in period 3.
• C)120 in period 2 and 120 in period 3.
• D)100 in period 2 and 100 in period 3.

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Definitions:

IRS

The Internal Revenue Service, the federal agency responsible for administering and enforcing the tax laws and collecting taxes in the United States.

Large Corporation

A significant-sized company that operates usually across multiple countries, having considerable influence and financial turnover.

Paid

The status of having received money in exchange for goods or services, or as compensation for work done.

State Revenue

The total income generated by a government from taxes, fees, and governmental activities to fund public services and initiatives.