Scenario 11.4 - Caffeine and Sugar

question 92

Multiple Choice

Scenario 11.4 - Caffeine and Sugar
With a fixed cost of $100 per order,Nathan decided it was vital to get his money's worth.His monthly demand for energy drinks was 10,000 bottles and holding cost was estimated at 20% of unit cost.The mail order company offered him a couple of possibilities - he could pay $4.00 per bottle for orders of up to 10,000 bottles.After that threshold,he would pay only $3.98 per bottle,and if he ordered 20,00 or more bottles in an order,he would pay only $3.96 per bottle.
-What is the best order quantity for Nathan to use?

• A)5,477
• B)5,505
• C)10,000
• D)5,491

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Definitions:

Factorial Designs

Experimental setups that allow researchers to examine the effects of two or more independent variables on a dependent variable simultaneously.

Independent Variable

The variable that is manipulated in an experiment to see its effect on a dependent variable.

Interactions

In research, refers to the way that different factors or variables influence each other, often changing the outcome or effects when combined.

Internal Validity

The extent to which a study can prove that a cause-and-effect relationship exists between the tested variables, excluding the influence of external factors.