The College Bookstore Sells a Unique Calculator to College Students

question 6

Multiple Choice

The College Bookstore sells a unique calculator to college students.The demand for this calculator is constant at 20 units per day.The lead time for this calculator is variable at an average of 9 days with a standard deviation of 2 days.Compute the statistical reorder point that results in a 95 percent in-stock probability.Choose the closest answer.

• A) 26 units
• B) 46 units
• C) 182 units
• D) 226 units
• E) 246 units

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Definitions:

Income Statement

A financial statement that shows a company's revenue and expenses over a specific period, usually resulting in a net profit or loss.

Retained Earnings

The portion of net earnings not distributed to shareholders as dividends but retained by the company to be reinvested in its core business or to pay debt.

Accounts Payable

Money owed by a company to its creditors or suppliers for goods and services that have been received but not yet paid for.

Debit Entry

An accounting entry that increases an asset or expense account, or decreases a liability, equity, or revenue account.