Scenario 9.10 the Dolly Llama Farm Keeps an Average of 50 of 50

question 43

Multiple Choice

Scenario 9.10
The Dolly Llama Farm keeps an average of 50 of those funny creatures on hand and each consumes a pound of grain a day, 365 days per year. Grain costs $12 for a 50 pound bag and it costs the farm $10 to make a run to the feed store to pick up an order, regardless of order size. It takes the feed store four days to acquire, mix, and bag the special blend of grains necessary to make the feed the Dolly Llama Farm prefers. Storage costs for the feed runs 15% of the unit cost as the cost of money, loss due to critters, and spoilage all add up.
-Refer to Scenario 9.10. What should the reorder point be if demand and lead time are invariant and the farm desires a 90% service level?

• A) two bags
• B) four bags
• C) six bags
• D) eight bags

Understand the customization options for email settings.

Recognize the structure and etiquette of concluding an email message.

Understand the concept and importance of making backups for data.

Explain how to utilize email features such as attachment preview.

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Definitions:

Book Value

The value of an asset as it appears on a company's balance sheet, calculated as the cost of the asset minus accumulated depreciation or impairment.

Consolidated Financial Statements

Financial statements that show the aggregate of a parent company and its subsidiaries, presenting the financial results and position as if the group were a single entity.

Cost Method

An accounting approach for investments, where the investment is recorded at cost and adjusted only for dividends received, impairments, and certain other limited circumstances.

Consolidated Statement

A financial report that combines the assets, liabilities, equity, income, expenses, and cash flows of a parent company and its subsidiaries.