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:

Manipulation Check

A procedure to determine if the experimental manipulation of the independent variable has the intended effect on the participants.

Independent Variable

The variable that is manipulated to observe its effect on the dependent variable.

Ceiling Effect

A limitation in data measurement where higher values become indistinguishable due to the upper limit of the scale being reached.

Confounding

An uncontrolled variable varies systematically with an independent variable; it is impossible to separate the effect of the independent variable from the confounding variable.