LAMA Creations Creates Sweaters Using the Wool of the Llama

question 3

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 are LAMA Creations' ordering costs?

• A) $350.00
• B) $480.00
• C) $960.00
• D) $1,060.00

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Definitions:

Therapeutic Range

The concentration range of a drug within the bloodstream that is considered effective and safe.

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A chemical compound used in medicine as a supplement and in food processing as a salt substitute.

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A flexible tube that is passed through the nose into the stomach for feeding or medication administration.

Morphine Sulfate

A powerful opioid analgesic medication used to relieve severe pain by acting directly on the central nervous system.