Which of the following is considered a carrying cost associated with granting credit? O a. A firm's
Question:
Which of the following is considered a carrying cost associated with granting credit?
O a. A firm's cost of equity.
O b.. A firm's cost of managing payments to suppliers.
O c. A firm's gains from bad debts.
O d. A firm's required return on payables.
O e. A firm's cost of managing credit.
Quidi Vidi Co. has 325 motors in its inventory at the start of the week. It will use all of these in its weekly production runs and then resupply its inventory for the next week. The carrying cost per motor is $84.26. The fixed cost per order is $63. The variable cost per motor is $122. How will the number of orders per year change if Quidi Vidi Co. adheres to the EOQ order level?
O a. Decrease of 55 orders.
• b. Increase of 159 orders.
O c. Increase of 107 orders.
O d. Increase of 123 orders.
O e. Increase of 55 orders.
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Macroeconomics Principles And Policy
ISBN: 9780324586213
11th Edition
Authors: William J. Baumol, Alan S. Blinder
