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Zip Games Purchases Blank DVD Disks onto Which It Copies

question 16

Essay

Zip Games purchases blank DVD disks onto which it copies its software for sale through its mail order operation. A disk costs Zip $.20. Processing an order for more disks cost $15. Zip uses 60000 disks annually, and the company has a 25% cost of capital.
a.Find the optimal order quantity.
b.How many orders are placed annually?
c.How frequently will orders be placed?


Definitions:

Cardiovascular Disease

A class of diseases that involve the heart or blood vessels, including coronary artery disease, hypertension, heart failure, and stroke.

Odds

The ratio of the probability of an event occurring to the probability of it not occurring.

Case-Control Study

is an observational study design in which two groups differing in outcome are identified and compared on the basis of some supposed causal attribute.

Obesity Status

A classification based on body mass index (BMI) to identify overweight and obese individuals based on their body fat.

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