Scenario 11.2 - S&H Mercantile

question 53

Multiple Choice

Scenario 11.2 - S&H Mercantile
The S&H Mercantile in Luther is the only game in town for a number of items,and tries valiantly to use only the storage space needed to display items since there is no stock room in the back of the store.One popular item,a 16-ounce can of dehydrated water,takes up 20 square inches of shelf space.The shelf space available for this item measures five feet by four feet.The store manager would like to order a quantity that can fill the shelf space without stacking and without needing to store cans elsewhere in the store.The amount ordered should all be on display once the S&H runs out and ideally would arrive just as the last can is purchased.
-Suppose the annual demand is 8,000 units and the cost per can is $3 with a holding cost of 10%.What is the required order cost per lot?

• A)38 cents
• B)$3.20
• C)$32
• D)$1.44

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Definitions:

Sacred

Connected with God (or the gods) or dedicated to a religious purpose and so deserving veneration.

Public Practices

Behaviors, routines, or activities conducted in public contexts, reflecting societal values, norms, or traditions.

Durkheim

Refers to Émile Durkheim, a foundational French sociologist known for his work on social cohesion and the division of labor.

Rituals

In Durkheim’s usage are public practices designed to connect people to the sacred.