Walrus Company Has the Following Information Available Concerning One of Its

question 51

Multiple Choice

Walrus Company has the following information available concerning one of its inventory items: $$\begin{array} { l r } \text { Cost of placing an or der } & \$ 30.00 \\\text { Unit carrying cost per year } & \$ 3.00 \\\text { Annual unit demand } & 6,625 \\\text { Safety stock } & 125 \\\text { Average daily demand } & 25 \\\text { Normal lead time in days } & 10\end{array}$$ If there is a delay in shipping the item, approximately how many days can be covered by the safety stock?

• A)5 days
• B)31 days
• C)26 days
• D)110 days

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Definitions:

Progressive Tax

Progressive tax is a taxation system where the tax rate increases as the taxable amount or income increases, placing a higher burden on those with higher incomes.

Average Tax Rate

The ratio of the total amount of taxes paid to the total tax base (taxable income or spending), essentially reflecting the percentage of income that is paid in taxes.

Marginal Tax Rate

The rate at which the next dollar of taxable income is taxed.

Taxable Income

The amount of an individual's or entity's income used as the basis for calculating how much tax they owe to the government, after deductions and exemptions.