Cartwright Graphics Uses a Special Purpose Paper on 80% of Its

question 7

Multiple Choice

Cartwright Graphics uses a special purpose paper on 80% of its jobs. The paper is purchased in 100-sheet packages at a cost of $100 per package. Management estimates that the cost of placing and receiving a typical order is $15, and the annual cost of carrying a package in inventory is $1.50. Cartwright uses 2,600 packages each year. Production is constant, and the lead time to receive an order is 1 week.
The reorder point is:

• A) 25 packages.
• B) 50 packages.
• C) 100 packages.
• D) 203 packages.
• E) 225 packages.

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Definitions:

Hormones

Biological chemicals that serve as messengers, coordinating bodily functions by transmitting signals from one cell to another.

Pituitary Gland

A pea-sized gland at the base of the brain that produces hormones influencing various bodily functions.

Hypothalamus

A crucial part of the brain that regulates many bodily functions such as temperature, hunger, thirst, and circadian rhythms.

Metabolization

The biological process of converting substances into metabolites, crucial for the elimination of drugs or toxins from the body.