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:

Joint Products

Multiple products that are produced from the same process or material inputs, where separation of the products occurs at a split-off point.

Common Input

Resources used in the production process that are shared among different products or services.

Nonproductive Time

Periods when production or work is not being done, often due to machine downtime, maintenance, or breaks.

Bottleneck Operation

A stage in a production process that causes a slowdown due to limited capacity, affecting the overall efficiency and output of the process.