Scenario 11.1 - Bubble and Squeak

question 35

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.
-If demand increases by a factor of k,the optimal lot size increases by a factor of

• A)k.
• B)k/2.
• C)k-squared.
• D)the square root of k.

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Definitions:

Gross Profit

The financial metric that represents the difference between revenue and the cost of goods sold before accounting for other expenses.

Department

A distinct area, division, or branch of an organization with specific roles or functions.

Income Statement

A financial statement that shows a company's revenues and expenses over a specific period, resulting in a net profit or loss.

Cash Flow Statement

A financial document detailing the inflow and outflow of cash in a business, thereby indicating its operating, investing, and financing activities over a period.