A Company Is Planning for Its Financing Needs and Uses

question 57

Multiple Choice

A company is planning for its financing needs and uses the basic fixed-order-quantity inventory model.Which of the following is the total cost (TC) of the inventory given an annual demand of 10,000, setup cost of $32, a holding cost per unit per year of $4, an EOQ of 400 units, and a cost per unit of inventory of $150?

• A)$1,501,600
• B)$1,498,200
• C)$500,687
• D)$499,313
• E)None of these

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Definitions:

Objective and Empirical

Refers to information or research that is based on observable, measurable evidence rather than on subjective opinion or theory.

Functionalism

A philosophical and psychological approach that considers mental life and behavior in terms of active adaptation to the person's environment.

Taste Sensations

The sensory experience produced when a substance in the mouth reacts chemically with taste receptor cells located on taste buds.

Structuralist Approach

A method in psychology aiming to understand the structure of the mind by analyzing its constituent components, such as sensations and perceptions.