Scenario 9.5 Tom Bergman, Owner and Operator of the Earplug Superstore, Is

question 78

Multiple Choice

Scenario 9.5
Tom Bergman, owner and operator of the Earplug Superstore, is reviewing the costs associated with the store's best-selling hearing aid, the BZ15. The data available to Dr. Bergman concerning this device follow.
Demand = 25 units/week
Order cost = $3/order
Holding cost = $1.50/unit/year
The Earplug Superstore operates 52 weeks a year.
-Use the information in Scenario 9.5. If Tom decides to order at the economic order quantity, what is the sum of the annual ordering cost and holding cost?

• A) less than or equal to $90
• B) greater than $90 but less than or equal to $100
• C) greater than $100 but less than or equal to $115
• D) greater than $115

Describe various financing options available for small businesses, including equity capital, trade credit, and factoring.

Understand the implications of loan terms such as maturity, interest rates, and repayment schedules.

Appreciate the complexities involved in securing financing and navigating financial institutions.

Grasp the concept of self-liquidating and installment loans and their applications for businesses.

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Definitions:

Optimal Distinctiveness Theory

A social psychology theory suggesting that individuals seek a balance between fitting in with a group and standing out as unique.

Autonomy

The capacity to make an informed, uncoerced decision or the state of being self-governing.

Brewer

Brewer may refer to a person who makes beer or the last name of individuals notable in various fields; without more context, it's hard to specify.

Social Groups

Collections of individuals who share common goals, interests, or identities, forming structured relationships and a sense of belonging among members.