Use the Information Below to Answer the Following Questions

question 21

Multiple Choice

Use the information below to answer the following questions
Aqua Ltd has forecast the yearly demand for its product as 5,000 units. 100 units of material must be used to produce the product. The cost of placing a single order for raw materials is $20, and the cost of holding one unit of material is $0.40 a year.
-Refer to the information above. The economic order quantity for raw materials is:

• A) 10,000 units.
• B) 1,000 units.
• C) 100 units.
• D) 7,071 units.

---

Definitions:

Commercial Property

Real estate used for business activities, including office buildings, retail spaces, warehouses, and industrial sites.

Listing Agreement

A contract between a property owner and a real estate agent, authorizing the agent to act on the owner’s behalf in the sale of the property.

Privity of Contract

A principle in contract law stating that only parties involved in the contract have the right to sue to enforce their rights or claim damages.

Commission

A fee paid for services, typically a percentage of the transaction value, to an agent or salesperson for facilitating or completing a sale.