Answer the Following Question(s) Using the Information Below

question 16

Multiple Choice

Answer the following question(s) using the information below:
The Wood Furniture company produces a specialty wood furniture product, and has the following information available concerning its inventory items:
Annual demand is 10,000 packages per year. The purchase price per package is $16.
-Sandrington Ltd. operates a retail bicycle shop. Wheel covers are popular with customers. Sandrington purchases these covers for $48 (per pair) and expects to sell 5,000 pairs per year. Ordering costs are estimated at $180 per order and relevant insurance handling etc. costs are estimated at $0.30 per month. The company has established a 14% annual return on investment. The EOQ quantity for Sandrington is:

• A) 418 units
• B) 506 units
• C) 2,449 units
• D) 707 units
• E) 24 units

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Definitions:

Repression

A defense mechanism where uncomfortable thoughts, feelings, or desires are forgotten or removed from conscious awareness.

Defense Mechanism

Psychological strategies employed by individuals to cope with reality and maintain a self-image.

Anxiety-Arousing Thoughts

Thoughts that induce feelings of anxiety or stress in an individual.

Repression

A defense mechanism where distressing thoughts, memories, or desires are pushed from the conscious mind into the unconscious.