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

question 3

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.If Cartwright holds a safety stock equal to a 30-day supply of chips, what is its average inventory level?

• A) 12,088
• B) 3,175
• C) 15,750
• D) 13,675
• E) 8,124

Understand the concepts of total fixed cost, total revenue, and profit-maximizing output in a purely competitive market.

Analyze cost data to determine a firm's optimal production level and associated economic outcomes.

Identify and interpret the short-run supply curve for a purely competitive firm.

Apply the principle of marginal analysis to firm decision-making in purely competitive markets.

---

Definitions:

Microorganisms

Very small, living organisms, usually single-celled, that can be found in all environments and can be bacteria, viruses, fungi, or protozoa.

Urine

A liquid by-product of metabolism in humans and many animals, expelled through the urinary system.

Bacteria

Microscopic, single-celled organisms that thrive in diverse environments, some of which can cause diseases.

Specimens

Samples or examples used for scientific testing or analysis.