Cycles De Oro Produces 120,000 High-Tek Bikes a Year and Orders

question 51

Multiple Choice

Cycles de Oro produces 120,000 high-tek bikes a year and orders the brake assembly from IKON for $15.40 each. The order cost is $84, and Cycles estimates its inventory carrying costs are 15%. What is its total ordering cost per year?

• A) $7,968
• B) $3,412
• C) $4,118
• D) $6,437

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Definitions:

Richard Walton

A notable figure in the field of industrial relations, known for his contributions to improving workplace relations and developing conflict resolution strategies.

Process Innovations

Changes or improvements made to processes (in manufacturing, technology, management, etc.) aimed at enhancing efficiency, productivity, or quality.

Lack of Diffusion

The failure or slow process of spreading ideas, practices, or innovations across members within a society, organization, or community.

Diffuse

To spread or disperse something widely, or to be overly verbose and scattered in speech or writing.