Using the Fixed-Order-Quantity Model, Which of the Following Is the Total

question 94

Multiple Choice

Using the fixed-order-quantity model, which of the following is the total ordering cost of inventory given an annual demand of 36,000 units, a cost per order of $80, and a holding cost per unit per year of $4?

• A) $849
• B) $1,200
• C) $1,889
• D) $2,267
• E) $2,400

---

Definitions:

Colonizing Mission

Efforts or expeditions undertaken by a country to establish control over new territories, often involving settlement and economic exploitation.

Lucas Vasquez de Allyón

A Spanish explorer who, in the early 16th century, attempted to establish a colony in what is now the southeastern United States, notable for his efforts to create a settlement in present-day South Carolina.

Legal System

The comprehensive system of rules and principles, enforced by institutions, which governs a society.

Free Black Man

A Black individual who was not enslaved, living in a period where slavery was legally sanctioned but enjoying a limited form of freedom and rights.