LAMA Creations Creates Sweaters Using the Wool of the Llama

question 34

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. LAMA Creations' ordering cost will change to $90.00 per order if the order quantity is increased from 100 bundles to 200 bundles. What order quantity should be placed in this case?

• A) 200 bundles
• B) 0 bundles
• C) 235 bundles
• D) 249 bundles

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Definitions:

Cognitive Dissonance

A psychological state in which an individual experiences discomfort or tension from holding two or more contradictory beliefs, ideas, or values simultaneously.

Individual's Attitude

A person's settled way of thinking or feeling about something, revealed through their behavior.

Job Satisfaction

The feeling of fulfillment or enjoyment that comes from performing one's job, often influenced by working conditions, recognition, and compensation.

Employee Absenteeism

The frequent absence of an employee from work, which can be voluntary or involuntary, affecting productivity and morale.