Monika's Sells an Average of 640 Frying Pans a Year

question 140

Multiple Choice

Monika's sells an average of 640 frying pans a year. The carrying cost per unit is $1.10. The inventory is restocked only when it is depleted. The restocked inventory level is 40 pans. What are the total carrying costs of the frying pans?

• A) $16.00
• B) $17.60
• C) $22.00
• D) $40.00
• E) $44.00

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Definitions:

Accountability

The obligation of an individual or organization to account for its activities, accept responsibility for them, and disclose the results in a transparent manner.

Corporate Social Responsibility

A business model that helps a company be socially accountable to itself, its stakeholders, and the public.

Reasonable Price

A price that is fair and acceptable to both buyers and sellers, given the quality and nature of the product or service.

Services and Products

The combination of tangible goods and intangible activities that fulfill a need or want of consumers.