LAMA Creations Creates Sweaters Using the Wool of the Llama

question 24

Multiple Choice

LAMA Creations creates sweaters using the wool of the Llama. The wool used in the manufacturing process is ordered by the bundle. LAMA requires 1,200 bundles of Llama wool per year and places orders of 100 bundles at a time. The cost of ordering is $80.00 per order and the carrying cost per bundle is $3.50. What is the economic order quantity for Lama Creations.

• A) 235 bundles
• B) 117 bundles
• C) 470 bundles
• D) 200 bundles

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Definitions:

Tetrads

Groups of four chromatids formed by the pairing of two homologous chromosomes during meiosis.

M Phase

That part of the cell cycle in which mitosis and cytokinesis occur.

Cytokinesis

The process during cell division in which the cytoplasm of a single eukaryotic cell is divided into two daughter cells.

Meiosis I

The first meiotic division; consists of prophase I, metaphase I, anaphase I, and telophase I; see meiosis.