Table 51
Fred Jacobs, Assistant Manager of Home and Hearth, Is

question 92

Multiple Choice

Table 5.1
Fred Jacobs, assistant manager of Home and Hearth, is reviewing the costs associated with the store's best-selling frying pan. The data available to Mr. Jacobs concerning this frying pan follow.
$$\begin{array} { l l } \text { Demand } & = 20 \text { units/week } \\\text { Order cost } & = \$ 75 / \text { order } \\\text { Holding cost } & = \$ 15 / \text { unit/year }\end{array}$$
Home and Hearth operates 50 weeks per year.
-Use the information in Table 6.1.Jacobs has recently learned of the economic order quantity in his business management class.If Home and Hearth implemented the EOQ,which of the following statements is TRUE?

• A) The annual order cost and holding cost would increase.
• B) The economic order quantity would be greater than 125 units.
• C) The annual order cost would increase.
• D) The annual holding cost would increase.

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Definitions:

Qualified Terminable Interest Property Trust

A type of trust that allows an individual to transfer assets to a surviving spouse tax-free upon their death, while controlling the distribution of the estate after the spouse's death.

Uniform Probate Code

A set of laws designed to simplify the probate process and standardize the distribution of an individual's estate across the United States.

Executor

A person appointed by a will to manage the estate of the deceased.

Administrator

An administrator is an individual or entity responsible for managing or overseeing the operations and tasks of an organization or estate, often in a legal or business context.