Use the Table Below to Answer the Following Question(s)

question 50

Multiple Choice

Use the table below to answer the following question(s) .
Below is the spreadsheet for an economic order quantity model.

Assume that the distribution of demand is normal with a mean of 20,000 and standard deviation of 2,000.
-What is the reorder point required to attain a 95% service level?

• A)460.0
• B)750.5
• C)571.0
• D)640.5

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Definitions:

Market Value

The cost at which an asset or service can presently be transacted in the market.

Taxable

Pertains to financial income or transactions that are subject to taxation by governmental authorities.

Dividends

Dividends are payments made by a corporation to its shareholder members, distributing a portion of the company’s earnings as a reward for their investment.

Stock Price

The cost of purchasing a share of a company on the stock market.