Determine, by Hand, All Critical Numbers of and Use

question 46

Multiple Choice

Determine, by hand, all critical numbers of and use the First Derivative Test to classify each as a local minimum, local maximum or neither.

• A) local maximum at Local minimum at Neither at
• B) local maximum at Local minimum at Neither at
• C) local maximum: Local minimum: Neither at
• D) local maximum: Local minimum: Neither at

---

Definitions:

Inventory Turnover Ratio

A measure of how efficiently a company turns its inventory into sales by comparing cost of goods sold to average inventory for a period.

Inventories

Inventories are the goods and materials a business holds for the purpose of resale or production in the ordinary course of business.

Cost of Goods Sold

The total cost directly involved in manufacturing or acquiring the products sold by a company during a particular period.

Acid Test Ratio

A liquidity ratio; those assets that are most easily converted to cash are divided by current liabilities to indicate ability to pay off short-term debt. Also called quick ratio.