A Restaurant Currently Uses 62,500 Boxes of Napkins Each Year

question 41

Multiple Choice

A restaurant currently uses 62,500 boxes of napkins each year at a constant daily rate over the 365 days that it is open.The cost to order napkins is $200.00 per order and the annual carrying cost for one box of napkins is $1.00.If the restaurant orders the economic order quantity then the time between orders (order cycle) is

• A)125 days.
• B)75.3 days.
• C)32.8 days.
• D)29.2 days.

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Definitions:

Profits

The financial gain realized when the revenues generated from business operations exceed the expenses, taxes, and costs incurred.

GDP

Gross Domestic Product (GDP) is the total monetary or market value of all the finished goods and services produced within a country's borders in a specific time period.

Sales Opportunity

A situation or instance where there is a potential for a business to sell its products or services, often identified through marketing and analysis.

Inflation-Adjusted

Describes values that have been adjusted for inflation, often to compare the real purchasing power of money or to reflect the real value of earnings or assets over time.