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:

Average Attendance

The mean number of individuals present at a series of events or within a given period.

Negative Residual

The difference between an observed value and the predicted value in a regression analysis, specifically when the observed value is less than the predicted value.

Electricity Usage

The amount of electric energy consumed by a device, home, or organization over a specific period.

Square Feet

A unit of area measurement in the Imperial and US customary systems, equal to the area of a square with sides one foot long.