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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?
Negligence
The failure to take appropriate care in doing something, leading to damage or injury to another.
Worn Down Brakes
A condition of vehicle brakes where the brake pads or shoes have been used to the point of reduced effectiveness, posing safety risks.
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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