Use This Information to Answer the Following Questions

question 30

Multiple Choice

Use this information to answer the following questions.
A bakery buys sugar in 15-pound bags.The bakery uses 5000 bags of sugar each year.Carrying costs are $20 per bag per year.Ordering costs are estimated at $5 per order.Assume that the bakery is open 250 days a year and its daily demand is estimated at 20 bags.It takes 5 days for each order of sugar to be filled.
-Refer to the information above.What are the total annual holding costs?

• A)$500
• B)$1000
• C)$20
• D)$750
• E)$250

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Definitions:

Color

A property of light as seen by people, primarily based on different wavelengths being perceived as different hues.

Color Sensations

Experiences or perceptions of colors by the visual system.

Cones

Retinal receptors that are concentrated near the center of the retina and that function in daylight or in well-lit conditions. Cones detect fine detail and give rise to color sensations.

Fovea

A tiny depression in the retina of the eye where visual acuity is highest due to a high concentration of cones.