If Freemantle Ferry Company Has a Safety Stock of 240

question 62

Multiple Choice

If Freemantle Ferry Company has a safety stock of 240 units and the average daily demand is 30 units,how many days can be covered if the shipment from the supplier is delayed by 12 days?

• A)12.0 days
• B)6.7 days
• C)8.0 days
• D)10.0 days

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Definitions:

Operating Activities

Activities that relate directly to the business's primary operations and functions, including sales, distribution, and production, influencing the day-to-day profitability.

Cash Receipts

The collection of money, including cash and checks, received by a business during a specific period.

Plant Assets

Long-term tangible assets used in the production of goods and services, such as buildings, machinery, and equipment.

Cash Flows

The net amount of cash and cash equivalents being transferred into and out of a business.