A Pencil Supplier Just Introduced Quantity Discounts

question 49

Multiple Choice

A pencil supplier just introduced quantity discounts.The price schedule follows. XYZ store's annual demand remains at 350 units and ordering cost at $2 per order.If annual holding cost is 30 percent of the pencils' per-unit price,what order quantity should XYZ select to minimize all costs?

• A)fewer than or equal to 150 units
• B)greater than 150 units but fewer than or equal to 199 units
• C)greater than 199 units but fewer than or equal to 399 units
• D)greater than 399 units

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Definitions:

Frontier Settlers

Individuals or families who moved to the edge of settled territories to establish a new life, often facing harsh conditions and conflicts with indigenous people.

Anti-Federalists

Opponents of the ratification of the U.S. Constitution in 1787-1788, who favored stronger state governments and feared a too powerful federal government.

Proclamation of 1763

Royal directive issued after the French and Indian War prohibiting settlement, surveys, and land grants west of the Appalachian Mountains; caused considerable resentment among colonists hoping to move west.

Articles of Confederation

The original constitution of the United States, ratified in 1781, which was eventually replaced by the U.S. Constitution in 1789 due to its weakness in central governance.