On an Annual Requirement of 100 Items Spread Evenly Throughout

question 28

Multiple Choice

On an annual requirement of 100 items spread evenly throughout the year,a purchaser has an opportunity of buying all 100 units at a price of $100 each,or buying 10 units at a time at a price of $130.If the inventory carrying cost is 20 percent per year and assuming no ordering costs:

• A)buying 100 at a time will save the company $2,130 per year.
• B)buying 100 at a time will save the company $2,260 per year.
• C)buying 100 at a time will save the company $3,000 per year.
• D)buying 10 at a time will save the company $1,000 per year.
• E)buying 10 at a time will save the company $870 per year.

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Definitions:

Retina

A thin layer of tissue at the back of the eye that contains cells sensitive to light, which convert light into neural signals for visual recognition.

Visual Receptors

Cells in the eye, specifically rods and cones, that respond to light and enable vision.

Sclera

The white outer layer of the eyeball that, along with other structures, protects the eye and helps maintain its shape.

Cornea

The transparent front part of the eye that covers the iris, pupil, and anterior chamber, contributing to the eye's focusing power.