Aeroboats Frame Corporation Increased the Size of Several Inventory Order

question 88

Multiple Choice

Aeroboats Frame Corporation increased the size of several inventory order quantities that had previously been determined using the EOQ model. What is the impact on the total annual ordering costs?

• A)increase
• B)decrease
• C)no change
• D)cannot be determined

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Definitions:

Jelly Beans

Small bean-shaped sugar candies with soft candy shells and gel interiors, coming in various flavors and colors.

Cups

Units of measurement typically used in cooking to quantify volume, or small round containers used for drinking.

Liters

A unit of volume in the metric system, used to measure liquids and some solids.

Kilograms

A unit of mass in the metric system, equal to one thousand grams.