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:

Per Capita

A statistical measure expressed as a total divided by the number of individuals in the population, often used for comparison purposes.

Real Income Per Capita

Real income per capita measures the average income earned per person in a given area, adjusted for inflation, to reflect the actual purchasing power.

Income Gap

This refers to the disparity in income between different groups in society, often measured between the wealthy and the poor.

Low-Income

A condition where an individual or family earns below a certain income threshold, often qualifying them for government assistance.