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Zip Games Purchases Blank DVD Disks onto Which It Copies

question 16

Essay

Zip Games purchases blank DVD disks onto which it copies its software for sale through its mail order operation. A disk costs Zip $.20. Processing an order for more disks cost $15. Zip uses 60000 disks annually, and the company has a 25% cost of capital.
a.Find the optimal order quantity.
b.How many orders are placed annually?
c.How frequently will orders be placed?


Definitions:

Moral Principles

are basic guidelines or rules that govern ethical behavior and decision-making, reflecting beliefs about what is right and wrong.

Duty

An obligation or responsibility to act in a certain way, often imposed by morals, law, or custom.

Virtue

Moral excellence and righteousness; an admirable quality or trait that is esteemed and desirable.

Programmed Decisions

Automatic responses to routine and recurring situations.

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