Solve the Problem. -A Bookstore Has an Annual Demand for 63,000 Copies of 63,000

question 97

Multiple Choice

Solve the problem.
-A bookstore has an annual demand for 63,000 copies of a best-selling book. It costs $0.40 to store one copy for one year, and it costs $125 to place an order. Find the optimum number of copies per order.

• A) 5,648 copies
• B) 6,275 copies
• C) 9,922 copies
• D) 8,099 copies

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Definitions:

Fixed Asset Turnover Ratio

A performance metric that evaluates how efficiently a company is using its fixed assets to generate sales.

Net Operating Income

The profit realized from a business's operations after subtracting operating expenses from revenue.

Denominator

The bottom number in a fraction which indicates how many equal parts the whole is divided into.

Intangible Assets

Non-physical assets that have value, such as patents, trademarks, copyrights, and goodwill.