Multiple Choice Questions: A car rental agency uses 96 boxes of staples a year. The boxes cost
Question:
Multiple Choice Questions:
A car rental agency uses 96 boxes of staples a year. The boxes cost $4 each. It costs $10 to order staples, and carrying costs are $0.80 per box on an annual basis. [Answer the following questions]
1. Determine the order quantity that will minimize the sum of ordering and holding boxes of staples
A. 50
B. 49
C. 51
D.48
2. Determine the annual cost of ordering and carrying the boxes of staples ---
A. 40.30
B. 39.20
C. 41.37
D. 38.25
A service garage uses 120 boxes of cleaning cloths a year. The boxes cost $6 each. Ordering cost is $3 and holding cost is 10 percent of purchase cost per unit on an annual basis. [Answer the following questions]
3. Determine the economic order quantity [Round up your answer]
A. 50
B. 35
C. 48
D. 51
4. Determine the total cost of carrying the cloths (excluding purchase price)
A. 10.60
B. 10.29
C. 20.67
D. 20.70
5. Determine the average inventory ---
A. 18.0
B. 17.5
C. 18.5
D. 17.0Expert Answer:
