The High-Rise Building Company Uses 400,000 Tons of Stone Per

question 75

Multiple Choice

The High-Rise Building Company uses 400,000 tons of stone per year.The carrying costs are $100/ton.The cost per order is $500.Calculate the economic order quantity per order.

• A)1,000 tons
• B)2,000 tons
• C)3,000 tons
• D)4,000

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Definitions:

GIC

A Guaranteed Investment Certificate, particular to the Canadian market, ensures investors a promised rate of return within a set duration.

Semi-annual Interest

Interest that is calculated and paid twice a year on an investment or loan.

Invested

The deployment of funds with the intention of acquiring income or profit.

Regular-interest

Regular interest refers to the consistent periodic return earned on an investment or paid on a loan as determined by the interest rate.