How many cases of microwave popcorn are sold annually by a firm which has total annual order costs of $32,000, orders in units of 100 cases, and is charged $90 per order in addition to the $72 per case product cost?

Question

Quizplus · Accepted Answer

The total annual order cost is given by the formula: Total Order Cost = (Number of Orders) x (Cost per Order). Given the total order cost is $32,000 and the cost per order is $90, we can find the number of orders: Number of Orders = $32,000 / $90 = 355.56. Since orders are in units of 100 cases, the total number of cases sold annually is 355.56 x 100 = 35,556 cases.

How Many Cases of Microwave Popcorn Are Sold Annually by a Firm