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:

Prospective Buyer

An individual or organization showing interest in purchasing a product or service, potentially becoming a customer.

Request

A solicitation or petition for something required or desired.

Transaction

The act of buying or selling something; a business deal or financial exchange.

Customer Database

A collection of information about customers, including contact details, purchase history, and preferences, used by businesses to tailor marketing efforts and improve service.