Consider the Following Data Supplied by Cotton Tops,a T-Shirt Distributor

question 1

Multiple Choice

Consider the following data supplied by Cotton Tops,a t-shirt distributor:
Given that the manager charges equipment set-up costs as a separate cost to the purchase price of $4.92 per t-shirt,calculate the economic order quantity if sales increased by 100 per cent.

• A)9195
• B)13 000
• C)14 500
• D)10 400

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Definitions:

Gainsharing Plan

An incentive strategy that rewards employees for contributing to the company's productivity improvements by sharing the resultant financial gains.

Profit-Sharing Plan

A company-wide program that provides employees with a share in the profits of the company, typically based on its quarterly or annual earnings.

Merit Pay

A pay system where employees are compensated based on their performance, as measured through appraisals or achievements, incentivizing higher productivity and excellence.

Individual Bonus

A financial reward given to an employee for achieving specific performance targets or completing tasks beyond regular job requirements.