An Electronics Store Estimates That It Can Sell 2,000 Memory

question 31

Multiple Choice

An electronics store estimates that it can sell 2,000 memory cards each year.Each card costs the store $7.00; holding costs equal 20 percent of unit costs and order costs are $10 per order.The economic order quantity is ________.

• A) 12 cards
• B) 122 cards
• C) 140 cards
• D) 169 cards

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Definitions:

Stock Split

A corporate action where a company divides its existing stock into multiple shares to boost the liquidity of the shares, without changing the market capitalization.

Percent Of Ownership

The portion of a company or asset that an individual or entity owns, typically expressed as a percentage.

No-Par Stock

Shares issued without a specified face value, allowing companies flexibility in setting share prices and accounting for equity.

Stated Value

A value assigned to a company's shares that does not have a par value; often used in accounting for preferred stock.