A Company Is Planning for Its Financing Needs and Uses

question 23

Multiple Choice

A company is planning for its financing needs and uses the basic fixed-order-quantity inventory model. Which of the following is the total cost (TC) of the inventory given an annual demand of 10,000, setup cost of $32, a holding cost per unit per year of $4, an EOQ of 400 units, and a cost per unit of inventory of $150?

• A) $1,501,600
• B) $1,498,200
• C) $500,687
• D) $499,313
• E) None of these choices are correct

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Definitions:

Tolerance

The willingness to accept and permit beliefs or practices that one may disagree with or find undesirable.

Constantly Comparing

The habitual act of comparing oneself to others in various aspects of life.

Motivate

To provide a reason, incentive, or encouragement for someone to act or behave in a particular way.

Achievement

Achievement refers to something accomplished, particularly by superior ability, special effort, great courage, or a notable feat, often recognized because of its significance.