Ticktock Clocks Sells 10,000 Alarm Clocks Each Year

question 38

Multiple Choice

Ticktock Clocks sells 10,000 alarm clocks each year. If the total cost of placing an order is $65 and it costs $85 per year to carry the alarm clock in inventory, calculate the optimal order size using the EOQ formula. Round your final answer to nearest whole number.

• A) 124 clocks
• B) 161 clocks
• C) 15,294 clocks
• D) 26,154 clocks

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Definitions:

Promotion Budget

Financial allocation specifically dedicated to marketing and advertising efforts to increase sales or raise brand awareness.

Personal Selling Activities

Direct, face-to-face activities undertaken by sales personnel to persuade consumers to make a purchase, typically involving presentations or demonstrations.

Advertising

A form of marketing communication used to promote or sell a product, service, or idea through various mediums to reach and influence consumers.

Sales Promotion

A marketing strategy involving short-term incentives to encourage the purchase or sale of a product or service.