Lagoon Enterprises Uses an Economic Order Quantity Model and Has

question 11

Multiple Choice

Lagoon Enterprises uses an economic order quantity model and has determined an optimal order size of 500 units. Annual demand is 10,000 units, ordering costs are $50 per order, and holding costs are $4 per unit. The company's annual ordering and holding costs total:

• A) $2,000.
• B) $3,000.
• C) $21,000.
• D) $41,000.
• E) None of the answers is correct.

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Definitions:

Depressed Clients

Individuals seeking therapy or counseling services who are suffering from depression, characterized by persistent sadness and loss of interest in activities.

Negative Circumstances

Situations or conditions that adversely affect a person's state of being, potentially leading to negative outcomes or emotions.

Token Economy

An operant conditioning procedure in which individuals earn tokens for exhibiting desired behavior which can later be exchanged for rewards.

Systematic Desensitization

A therapeutic technique used to reduce phobia or anxiety through gradual exposure to the feared object or situation coupled with relaxation exercises.