Answer the Following Questions Using the Information Below:
Short Grass

question 145

Multiple Choice

Answer the following questions using the information below:
Short Grass Incorporated is a distributor of golf balls. Martin's Golf Supplies is a local retail outlet which sells golf balls. Martin's purchases the golf balls from Short Grass Incorporated at $0.75 per ball; the golf balls are shipped in cartons of 72. Short Grass Incorporated pays all incoming freight, and Martin's Golf Supplies does not inspect the balls due to Short Grass' reputation for high quality. Annual demand is 155,520 golf balls at a rate of 2,991 balls per week. Martin's Golf Supplies earns 12% on its cash investments. The purchase-order lead time is one week. The following cost data are available:
$\begin{array} { l } \text { Relevant ordering costs per purchase order}&\$125.00 \\ \text {arrying costs per carton per year: }& \\ \text {Relevant insurance, materials handling, }& \\ \text {breakage, etc., per year }&\$0.77 \\\end{array}$

-What is the economic order quantity?

• A) 180 cartons
• B) 273 cartons
• C) 270 cartons
• D) 360 cartons

Recognize the role of psychographic and behavioral variables in forming segments and targeting specific market demographics.

Understand the basic concepts and mechanisms of arbitrage opportunities in futures and spot markets.

Identify and calculate the appropriate futures prices to prevent arbitrage opportunities based on interest rate differentials and exchange rates.

Describe the characteristics and contract specifications of various stock index futures.

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Definitions:

Activity-based Management

A management strategy that focuses on optimizing activities to improve the value received by the customer and the profit gained by providing this value.

Waste Elimination

The process of identifying and removing non-value-added activities or materials in a production or business operation to improve efficiency and reduce costs.

Activity-based Costing

An approach to costing that focuses on activities as the fundamental cost drivers, and assigns costs to products and services based on their consumption of these activities.

Manufacturing Overhead Costs

Costs in the manufacturing process that are not directly attributable to the specific product, including equipment maintenance and factory supervision.