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

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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.How many orders should Cartwright place during the year?

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Definitions:

Negligence

The failure to take appropriate care in doing something, leading to damage or injury to another.

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Sue

The act of bringing a legal action against an individual, entity, or organization, seeking redress or enforcement of rights through a judicial process.

Reasonable Foreseeability Test

A test of whether a duty of care is owed, based on what a person should have anticipated would be the consequences of his action.

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