Use This Information to Answer the Following Questions

question 12

Multiple Choice

Use this information to answer the following questions.
A cake factory can produce cakes at the rate of 500 per day.The factory supplies its cakes to local grocery stores at a rate of 250 per day.The cost to prepare the equipment for producing the cakes is $20.Annual holding costs are $2 per cake.Assume that the factory operates 250 days a year.
-Refer to the information above.What is the maximum inventory held in a given cycle?

• A)825.56
• B)790.57
• C)800
• D)900.39
• E)750.44

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Definitions:

Occupancy Rate

The ratio or percentage of occupied spaces to the total number of available spaces in a facility, such as a hotel or apartment complex.

Hotel Industry

A sector of the hospitality industry focusing on providing accommodation, meals, and other services for travelers and tourists.

Manufacturing Process

A sequence of operations that transforms raw materials or components into finished goods.

Operating Results

The outcome of a company's main business activities, including profit or loss, before considering the effects of non-operational income and expenses.