Answer the Following Questions Using the Information Below:
the Following

question 34

Multiple Choice

Answer the following questions using the information below:
The following information applies to Krynton Corp. which supplies microscopes to laboratories throughout the country. Krynton purchases the microscopes from a manufacturer which has a reputation for very high quality in its manufacturing operation.
$\begin{array}{lr}\text { Annual demand (weekly demand }=1 / 52 \text { of annual demand) } & 13,000 \text { units } \\\text { Orders per year as per EOQ model } & 13 \\\text { Lead time in days } & 15 \text { days } \\\text { Annual relevant carrying costs } & \$ 2,600\end{array}$
-Assuming each order was made at the economic order quantity amount,what is the cost of placing an order?

• A) $322 per order
• B) $200 per order
• C) $231 per order
• D) $417 per order

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Definitions:

Consumer Surplus

The difference between what consumers are willing to pay for a good or service and what they actually pay, representing a measure of consumer benefit.

Producer Surplus

The difference between what producers are willing to accept for a good versus what they actually receive, typically viewed as a measure of producer welfare.

Consumer Surplus

The divergence between the sum consumers are prepared to pay for a product or service and the sum that is actually paid.

Maximum Price

A price ceiling set by a government or regulatory body, above which a particular good or service cannot be sold, often to protect consumers.