LAMA Creations Creates Sweaters Using the Wool of the Llama

question 17

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' total costs of managing inventory?

• A) $960.00
• B) $1,135.00
• C) $1,225.00
• D) $175.00

---

Definitions:

Survey

A methodology employed to gather data from a specific group of participants in order to acquire knowledge and understandings about different subjects of interest.

Experimenter Bias

A form of bias that occurs when a researcher's expectations influence the outcome of an experiment.

Policy Change

Policy change involves modifications or complete overhauls of existing rules, regulations, or principles within an organization, government, or system.

Confounded Variables

External factors in an experiment that can affect the results, making it difficult to determine causal relationships.