Figure 24-4 Buckner Manufacturing Purchases Components Produced by Cochran Company in the in the Manufacture

question 5

Multiple Choice

Figure 24-4
Buckner Manufacturing purchases components produced by Cochran Company in the manufacture of their main product. For the next year, Buckner expects to use a total of 30,000 parts. Buckner typically orders 500 units at a time. The cost of placing an order is £40, and the average annual cost of carrying one unit of inventory is £2.
-Refer to Figure 24-4. Buckner's total carrying cost is

• A)£1,000.
• B)£500.
• C)£2,400.
• D)£2,900.

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Definitions:

Pectoralis Major

A large muscle in the upper chest that aids in the movement of the shoulder joint, including flexion, rotation, and adduction of the arm.

Coracobrachialis

A muscle in the shoulder that assists in flexing and adducting the arm.

Tuberosity

A large rounded projection on a bone, often serving as an attachment point for muscles and ligaments.

Brachioradialis

A muscle of the forearm that flexes the forearm at the elbow, especially when the forearm is in a position midway between pronation and supination.