Scenario 9.5 Tom Bergman, Owner and Operator of the Earplug Superstore, Is

question 78

Multiple Choice

Scenario 9.5
Tom Bergman, owner and operator of the Earplug Superstore, is reviewing the costs associated with the store's best-selling hearing aid, the BZ15. The data available to Dr. Bergman concerning this device follow.
Demand = 25 units/week
Order cost = $3/order
Holding cost = $1.50/unit/year
The Earplug Superstore operates 52 weeks a year.
-Use the information in Scenario 9.5. If Tom decides to order at the economic order quantity, what is the sum of the annual ordering cost and holding cost?

• A) less than or equal to $90
• B) greater than $90 but less than or equal to $100
• C) greater than $100 but less than or equal to $115
• D) greater than $115

Learn the traditional family life cycle and its phases.

Differentiate between generalist practitioners and family therapy specialists.

Understand ethical considerations in soliciting personal information from clients.

Identify effective elements of sex education programs.

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Definitions:

Expected Utility

A theory in economics that calculates the anticipated utility or satisfaction from a decision under conditions of uncertainty.

Utility

An indicator of pleasure or contentment obtained by customers from using products or services.

Risk Averse

A description of an individual's or entity's preference to avoid risk, favoring certainty in investment or economic decisions.

Expected Utility

A concept in economics that calculates the utility expected from different outcomes, taking into account their probabilities.