Use the Following to Answer the Questions Below

question 61

Multiple Choice

Use the following to answer the questions below.
The Steele Bike Company assembles bicycles for a major retail toy outlet.The main purchase is bicycle frames for making these bicycles.Dan Steele,the owner,wants to locate a low-cost supplier for the frames used in this assembly operation.The supplier will be selected based on total annual cost to supply Steele's needs.Annual requirements are for 100,000 frames,and the company operates 200 days a year.Two suppliers,Acme and State,have quoted the same price for the frames,but quantities,lead times and shipping costs are considerably different.The following data are available for the two suppliers.

-Refer to the instruction above.What are the annual material costs for Acme?

• A)$550,000
• B)$750,000
• C)$3,900,000
• D)$35,000

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Definitions:

Sign Language

A form of communication using visual gestures and signs, primarily used by the deaf and hard-of-hearing.

Telegraphic Speech

A stage in language development during which a child uses two-word sentences with high content-value words, omitting smaller, less important ones.

Receptive Language

The capability to grasp or make sense of language that is listened to or read.

One-word Stage

The developmental period in early childhood when children begin to use single words to communicate meaning.