LAMA Creations Creates Sweaters Using the Wool of the Llama

question 25

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' carrying costs?

• A) $175.00
• B) $350.00
• C) $ 87.50
• D) $225.00

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Definitions:

Social Facilitation

The tendency for people to perform differently when in the presence of others compared to when alone, usually performing better on simple or well-rehearsed tasks.

Cognitive Dissonance

A psychological phenomenon where an individual experiences discomfort from holding two or more contradictory beliefs, values, or ideas simultaneously.

Groupthink

A mental effect that happens among a group when their preference for agreement or uniformity leads to illogical or ineffective choices being made.

Normative Social Influence

The influence of others that leads us to conform in order to be liked and accepted by them.