Answer the Following Questions Using the Information Below:
the Following

question 95

Multiple Choice

Answer the following questions using the information below:
The following information applies to Dental Labs Plus,which supplies dental burs (used in dental drills) to dentists throughout Victoria.Dental Labs Plus purchases the dental burs from a manufacturer which has a reputation for very high quality in its manufacturing operation.
$$\begin{array} { l l } \text { Antual demand (weekly demand = 1/52 of annual demand) } & 31200 \text { units } \\\text { Orders per year } & 25 \\\text { Lead time in days } & 20 \text { days } \\\text { Cost of placing an order } & \$ 100\end{array}$$
-What is the economic order quantity (EOQ) assuming each order was made at the economic-order-quantity (EOQ) amount?

• A)1560 units
• B)1040 units
• C)1248 units
• D)500 units

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Definitions:

Preferred Stock

A class of ownership in a corporation that has a higher claim on its assets and earnings than common stock, typically with fixed dividends.

Common Equity

The percentage of a corporation's equity held by investors in the form of common shares.

Weighted Average

A calculation that takes into account the varying degrees of importance of the numbers in a data set, giving more weight to some numbers than others.

Free Cash Flow

This refers to the amount of cash a company generates after accounting for cash outflows to support operations and maintain its capital assets. It is an important indicator of financial health.