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

question 24

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.What is the economic ordering quantity for chips?

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

---

Definitions:

Overfishing

A situation where fish are caught at a pace faster than they can reproduce, leading to a depletion of fish stocks, which can jeopardize marine ecosystems and the economic sustainability of fishing industries.

Economic Growth

Growth in the economy's production of goods and services over a certain period, often assessed through the Gross Domestic Product (GDP).

Richer Economies

Economies characterized by higher income levels, greater wealth, and advanced technological and infrastructural development compared to others.

Environmental Protection

Efforts and policies aimed at conserving the natural world to maintain healthy living conditions for all organisms.