Exhibit Cartwright Computing Cartwright Computing Expects to Order 126,000 Memory Chips for Inventory

question 29

Multiple Choice

Exhibit Cartwright Computing
Cartwright Computing 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.)
-Refer to Exhibit Cartwright Computing.How many orders should Cartwright place during the year?

• A) 12
• B) 25
• C) 30
• D) 40
• E) 60

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Definitions:

Cowan (2010)

Refers to research or findings by cognitive psychologist Nelson Cowan regarding cognitive development, specifically focusing on the theory of working memory.

Acoustic Encoding

A cognitive process that allows information to be remembered as a sequence of sounds.

Sensory Encoding

The process by which sensory information is converted into a form that the brain’s nervous system can understand and process.

Semantic Encoding

The process of converting information into a meaningful context, allowing for better retention and recall.