Ticktock Clocks Sells 10,000 Alarm Clocks Each Year

question 33

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, use the EOQ formula to calculate the optimal order size.

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

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Definitions:

Marginal Utility

The extra satisfaction or utility that an individual gains from consuming an additional unit of a good or service.

Price of Jam

The current market cost at which jam is sold, varying based on factors like quality, brand, and ingredients.

Price of Juice

The price of juice refers to the amount of money required to purchase a specific volume of juice, influenced by factors like production costs, brand, and market demand.

Indifference Curves

A visual chart that depicts various pairings of two products which deliver identical levels of contentment to a person.