When You See the Message That a Sale Has Caused

question 31

Multiple Choice

When you see the message that a sale has caused one or more items to drop below the reorder point,you should -

• A)cancel the sale
• B)reduce the quantity for the sale
• C)review the inventory statistics reports to see the items that you need to reorder
• D)review the inventory quantity reports to see the items that you need to reorder

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Definitions:

Cost Curves

Graphical representations showing how the cost to produce a given level of output changes with the amount of output.

Price-Taker Industry

An industry in which individual companies have no control over the market price of their product; they must "take" the market price as given.

Per-Unit Cost

The cost associated with producing or acquiring one unit of a product or service, calculated by dividing the total cost by the number of units.

Profit-Maximizing Output

The level of production at which a company can make the highest profit, considering the cost of production and market price.