For a Certain Item, the Cost-Minimizing Order Quantity Obtained with the Basic

question 52

Multiple Choice

For a certain item, the cost-minimizing order quantity obtained with the basic EOQ model is 200 units, and the total annual inventory (carrying and setup) cost is $400. What is the inventory carrying cost per unit per year for this item?

• A) $1.00
• B) $2.00
• C) $3.00
• D) $150.00
• E) not enough data to determine

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Definitions:

Facultative Bacteria

Bacteria that can switch between aerobic and anaerobic metabolism depending on oxygen availability.

Biochemical Reactions

Chemical processes occurring within living organisms to maintain life, including digestion, respiration, and synthesis of biomolecules.

Waxy Cell Wall

A characteristic feature of certain bacteria, signifying a thick outer layer composed of a complex lipid known as mycolic acid, providing resistance to some types of antibiotics and staining methods.

Aerobes

Bacteria that grow best in the presence of oxygen.