Scenario 11.4 - Caffeine and Sugar

question 17

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 total cost that Nathan can incur?

• A)$488,644
• B)$492,780
• C)$493,720
• D)$484,382

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Definitions:

Positive Psychology

A branch of psychology that focuses on the study of positive human functioning and promoting thriving on multiple levels.

Mental Hospital

A healthcare facility specializing in the treatment of individuals with mental health disorders.

Labeling

The practice of identifying and classifying individuals or groups based on characteristics or perceived behaviors.

David Rosenhan

A psychologist best known for his "On Being Sane in Insane Places" study, which challenged the validity of psychiatric diagnoses in the 1970s.