Big Woods is a lumber firm that sells plywood sheets to local builders. If the annual holding cost of a sheet of plywood is $6 and the managers of Big Woods order 1,000 sheets of plywood, what is the total annual carrying costs of the inventory?
A) $3,500
B) $7,000
C) $3,000
D) $6,00
C) $3,000
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Which of the following statements is true of Malthus's theory?
A) Malthus suggested that fertility level of the population will remain constant over time. B) Malthus suggested that the life expectancy of the population will remain constant over time. C) Malthus suggested that in the long run, income levels will grow exponentially. D) Malthus suggested that in the long run, income levels will stay at subsistence.
A food company trying to increase its profits by expanding in to the soft drinks business is an example of
a. Economies of scale b. Economies of Scope c. Diseconomies of Scale d. Diseconomies of Scope
The fact that the supply curve for a given firm's bond is vertical reflects the fact that
a. at any given point in time there are a fixed number of those bonds in existence. b. firms adjust the number of bonds they issue on a daily basis c. investors do not adjust their portfolios when interest rates change d. government limits the amount of bonds a company can issue
During periods of hyperinflation, which of the following is the most likely response of consumers?
a. Spend money as fast as possible. b. Lend money. c. Invest as much as possible. d. Save as much as possible.