Flanders Bar and Grill Orders Cleaning Supply Kits Using the EOQ

question 62

Multiple Choice

Flanders Bar and Grill orders cleaning supply kits using the EOQ model. The restaurant estimates that it uses 525 kits per year. The purchase price per kit is $12 with an estimated carrying cost rate of 15%. The cost to place an order from the kit supplier is $10. What is the annual carrying cost that the restaurant should expect?

• A) $120
• B) $137.48
• C) $76.38
• D) $68.74

---

Definitions:

Independence

The state or quality of being self-sufficient and not reliant on others for decision-making or support.

Emotional Self-awareness

The capability of recognizing and understanding one's own emotions, which is a key component of emotional intelligence.

Reality Testing

A psychological process through which an individual distinguishes between what is externally present and what is internally generated by the mind.

Empathy

The capacity to grasp and empathize with someone else's emotions by viewing things from their point of view.