Scenario 11.1 - Bubble and Squeak

question 46

Multiple Choice

Scenario 11.1 - Bubble and Squeak
The rising popularity of bubble and squeak as a breakfast item on the menu has resulted in a steady demand for peas.Over the course of the past week,457 patrons have ordered the hearty breakfast and each serving contains a half cup of English peas.It costs two cents to hold a half cup of peas in inventory for a year and $3 to place an order (remember they come all the way from England!) .It takes two weeks to ship a container from England loaded with peas.
-What is the cost of the inventory policy (excluding cost of goods) if the diner orders at the economic order quantity?

• A)$53.40
• B)$106.80
• C)$26.70
• D)$80.10

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Definitions:

Transformation

The process of changing the structure, appearance, or character of something, often seen in economic contexts as shifts in production or technology.

Opportunity Cost

The cost of forgoing the next best alternative when making a decision, a fundamental concept in economics that captures the essence of trade-offs.

Economic Growth

The growth in the real market value of goods and services that an economy generates over a period.

Technology

The application of scientific knowledge for practical purposes, especially in industry - machinery, equipment, and software developed from such scientific knowledge.