Scenario 9.9 "Gollee Those Cats Sure Go Through a Lot of Food

question 15

Multiple Choice

Scenario 9.9
"Gollee those cats sure go through a lot of food," Geoff exclaimed as he saw the shopping list pad that had been pre-printed with the words "cat food" at the top. He pondered a different approach to shopping for the furry little darlings, reviewed his shopping records, and discovered the following. The price of cat food has held steady at 89 cents per can. Despite feigning indifference, each of the seven cats nibbles their way through an average of one can per day, three hundred sixty five days a year. The price of gasoline has held constant at $3.50 per gallon and his pickup uses a gallon each way to the cat food store. The cost to hold a can of cat food is 10% of the unit price.
-Use the information in Scenario 9.9 to determine the combined cost of goods and inventory if Geoff decides to follow the economic order quantity model?

• A) $2,415
• B) $2,218
• C) $2,274
• D) $2,330

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Definitions:

Behavioral Targeting

A marketing strategy that uses individuals' behavior and preferences to tailor advertisements and content.

Opt-In Email

A type of email marketing where recipients have voluntarily chosen to receive emails from a sender, indicating their consent and interest.

Bait And Switch

A deceptive marketing strategy where a customer is attracted by the advertisement of a low-priced item but then is encouraged to buy a more expensive one.

Permission Marketing

A marketing strategy where businesses send promotional messages only to individuals who have consented to receive them.