If Fixed Cost at Quantity (Q) = 100 Is $130

question 163

Multiple Choice

If fixed cost at quantity (Q) = 100 is $130, then

• A) fixed cost at Q = 0 is $0.
• B) fixed cost at Q = 0 is less than $130.
• C) fixed cost at Q = 200 is $260.
• D) fixed cost at Q = 200 is $130.
• E) it is impossible to calculate fixed costs at any other quantity.

---

Definitions:

Sales Order

A document issued by a business to a customer, confirming the sale of goods or services under specified terms.

Economic Order Quantity

The optimal quantity of stock to order at one time, considering holding costs and ordering costs, to minimize total inventory costs.

Safety Stock

Additional inventory kept on hand to prevent stockouts caused by fluctuations in demand or supply delays.

Lead Time

The amount of time it takes for a process to go from the initiation phase to its completion.