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

question 178

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 average pantry space occupied by cat food if each can takes up 13 cubic inches and Geoff obeys an EOQ policy for managing the cat food purchase process.

• A) 2.4 cubic feet
• B) 24 cubic feet
• C) 4.8 cubic feet
• D) 12 cubic feet

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Definitions:

Consumer Goods

Items bought and used by consumers, rather than by manufacturers for producing other goods.

Communist Manifesto

A political pamphlet by Karl Marx and Friedrich Engels outlining the principles of communism and calling for the proletariat's uprising against the capitalist society.

Developed Capitalist Economies

Advanced economies with established financial markets, high levels of industrialization, and significant capital accumulation.

Allocating Resources

Refers to the process of distributing available resources among various competing needs and uses in an economy to achieve optimal outcomes.