A Product Whose EOQ Is 40 Units Experiences a Decrease

question 138

Multiple Choice

A product whose EOQ is 40 units experiences a decrease in ordering cost from $90 per order to $10 per order.The revised EOQ is:

• A)three times as large.
• B)one-third as large.
• C)nine times as large.
• D)one-ninth as large.
• E)cannot be determined

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Definitions:

Liquidation Process

The process of closing a business, selling its assets, and using the proceeds to pay off its debts, with any remaining funds distributed among shareholders.

Corporate Assets

resources owned by a corporation that have economic value and can be used to meet its financial obligations.

Articles of Merger

Legal documents filed with a governmental entity to officially merge two or more corporations, detailing the terms and conditions of the merger.

Voluntarily Dissolved

Referring to the intentional decision by the owners or stakeholders of a company to legally dissolve the corporation or business.