Aberwald Corporation Expects to Order 126,000 Memory Chips for Inventory

question 10

Multiple Choice

Aberwald Corporation expects to order 126,000 memory chips for inventory during the coming year, and it will use this inventory at a constant rate. Fixed ordering costs are $200 per order; the purchase price per chip is $25; and the firm's inventory carrying costs is equal to 20 percent of the purchase price. (Assume a 360-day year.)
-What is the economic ordering quantity for chips?

• A) 12,088
• B) 3,175
• C) 6,243
• D) 13,675
• E) 8,124

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Definitions:

Violent Behavior

Actions that involve physical force intended to hurt, damage, or kill someone or something, often stemming from various psychological or social factors.

Major Depressive Disorder

A mental health condition marked by persistent feelings of sadness, loss of interest, and a lack of energy, affecting daily functioning.

Auditory Hallucinations

Experiencing hearing voices or sounds that have no physical source and are not heard by others, often associated with mental health conditions.

Adequate Physical Space

A spatial requirement that ensures a physical environment is sufficient for its intended use, considering safety, comfort, and functionality.