Exhibit 28.2 Cartwright Computing Expects to Order 126,000 Memory Chips for Inventory

question 19

Multiple Choice

Exhibit 28.2
Cartwright Computing expects to order 126,000 memory chips for inventory during the coming year, and it will use this inventory at a constant rate. Fixed ordering costs are $200 per order; the purchase price per chip is $25; and the firm's inventory carrying costs is equal to 20 percent of the purchase price. (Assume a 360-day year.)
-Refer to Exhibit 28.2.What is the economic ordering quantity for chips?

• A) 12,088
• B) 3,175
• C) 6,243
• D) 13,675
• E) 8,124

---

Definitions:

Jaundice

A medical condition characterized by yellowing of the skin and eyes, often due to liver dysfunction or obstruction in the bile duct.

Newborn

An infant that is in its first few hours to weeks of life outside the uterus, requiring specific care and medical attention.

Growth and Development

The process by which living organisms increase in size and undergo changes in their structure, capabilities, and function.

Neonate

An infant during the first 4 weeks of life.