The General Chemical Company uses 150,000 gallons of hydrochloric acid per month. The cost of carrying the chemical in inventory is 50 cents per gallon per year, and the cost of ordering the chemical is $150 per order. The firm uses the chemical at a constant rate throughout the year. It takes 18 days to receive an order once it is placed. The reorder point is
A) 7,500 gallons.
B) 25,000 gallons.
C) 105,000 gallons.
D) 90,000 gallons.
Correct Answer:
Verified
Q114: The _financing strategy requires the firm to
Q115: The most important of the four C's
Q116: The aggressive financing strategy is risky in
Q117: A firm which uses the aggressive financing
Q118: A computerized inventory system that simulates needed
Q120: An increase in accounts receivable turnover due
Q121: The credit applicant's character includes all of
Q122: If the firm's cash discount period is
Q123: Delaying the payment of accounts payable in
Q124: A firm purchased raw materials on account
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents