Answer the Following Questions Using the Information Below

question 48

Multiple Choice

Answer the following questions using the information below:
Digital Goods is a distributor of DVDs. DVD Mart is a local retail outlet which sells blank and recorded DVDs. DVD Mart purchases tapes from Digital Goods at $10.00 per DVD; DVDs are shipped in packages of 25. Digital Goods pays all incoming freight, and DVD Mart does not inspect the DVDs due to Digital Goods' reputation for high quality. Annual demand is 208,000 DVDs at a rate of 4,000 DVDs per week. DVD Mart earns 15% on its cash investments. The purchase-order lead time is one week. The following cost data are available:

-What is the economic order quantity?

• A)384 packages
• B)475 packages
• C)146 packages
• D)196 packages

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Definitions:

Enzyme

Biological catalysts which accelerate chemical reactions in living organisms by lowering the activation energy.

Racemic Acid

A mixture of equal amounts of two enantiomers of an acid, making it optically inactive.

Strecker Synthesis

A chemical reaction for synthesizing amino acids by reacting an aldehyde with ammonium chloride and potassium cyanide, followed by hydrolysis.

Racemic Alanine

A mixture of equal parts of the D- and L-enantiomers of alanine, making it optically inactive due to the internal compensation of optical activity.