The Manager of the Quick Stop Corner Convenience Store (Which

question 42

Multiple Choice

The manager of the Quick Stop Corner Convenience Store (which never closes) sells four cases of Stein beer each day. Order costs are $8.00 per order, and Stein beer costs $.80 per six-pack (each case of Stein beer contains four six-packs) . Orders arrive three days from the time they are placed. Daily holding costs are equal to 5 percent of the cost of the beer.
If he were to order 16 cases of Stein beer at a time, what would be the length of an order cycle?

• A)0.25 days
• B)3 days
• C)1 day
• D)4 days
• E)20 days

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Definitions:

Cashews

Edible seeds harvested from the cashew tree, known for their distinct taste and numerous health benefits.

Comparative Advantage

The capacity of a person or a collective to perform a specific economic function more effectively than another function.

Specialization

The practice of focusing resources on the production of particular goods or services for which a person or entity has a competitive advantage.

Comparative Advantage

The ability of an individual or country to produce a particular good at a lower opportunity cost than another.