Bunny Helpers, Inc

question 8

Multiple Choice

Bunny Helpers, Inc., has just received an order for 100 Deluxe Easter Baskets, which must be ready for delivery at the start of week 6. An MRP planner has prepared the following table showing product structure, lead times (orders are lot-for-lot) , and quantities on hand

Each Deluxe Basket contains two dark chocolate truffles and four carved chocolate eggs.
If the firm is using a fixed-period lot size of two periods, what is the order size for the first order?

• A)120
• B)200
• C)280
• D)160
• E)150

---

Definitions:

Operating Cash Flow

The cash generated from the normal operating activities of a business over a specific period.

CCA Class

A category within the Capital Cost Allowance system in Canada that groups depreciable assets based on their type and the rate at which they can be depreciated for tax purposes.

Interest and Taxes

Interest and taxes are financial charges: interest is the cost of borrowing money, while taxes are mandatory contributions levied by governments on individuals and corporations.

NPV

Net Present Value (NPV) is a method used in capital budgeting to evaluate the profitability of an investment or project, by calculating the difference between the present value of cash inflows and outflows.