Kraus Department Store,located in Chicago,sells 1,700 Coffeemakers Per Year

question 96

Multiple Choice

Kraus Department Store,located in Chicago,sells 1,700 coffeemakers per year.The purchase price of each coffeemaker is $70.The ordering cost is $90 per order.The holding cost is 30% of the unit purchase price.In this example,the economic order quantity is given by ______.

• A)the square root of ((2 * 1700 * 90)/ 90))
• B)the square root of ((2 * 1700 * 90)/ 21))
• C)the square of ((2 * 1700 * 90)/ 90))
• D)the square of ((2 * 1700 * 90)/ 21))

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Definitions:

Cumulative Probability

The probability of an event occurring up to a certain point in time or over a range of values, often visualized through a cumulative distribution function.

Monthly Sales

The total volume or dollar value of all sales transactions made by a business within a month, used as an indicator of business performance and market demand.

Probability

The likelihood or chance of a specific outcome occurring, usually expressed as a ratio or percentage.

One-carat Diamond

A measurement unit for diamond weight, equivalent to 200 milligrams.