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Question
Aberwald Corporation expects to sell 120,000 memory chips this year. Aberwald has determined that it costs $3 to carry each chip in inventory and $50 each time an order for raw materials is placed. Assuming Aberwald always orders the EOQ amount, what will be its total ordering cost this year?
a. $7,2000
b. $260,000
c. $3,000
d. $800
e. $6,000
Answer
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Related questions
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Q:
Which of the following is true about financial institutions in the United States compared to those in other countries?
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a. True
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Q:
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d. Firms with relatively high debt ratios have higher expected returns when business is good.
e. Firms with relatively low debt ratios have higher expected returns when business is poor.