Author Question: Mountain Snow Sports, Inc is trying to determine the optimal order quantity for snow boards for the ... (Read 302 times)

ARLKQ · **on:** Jul 10, 2018

Mountain Snow Sports, Inc is trying to determine the optimal order quantity for snow boards for
the next twelve months. Annual sales are expected to be 1,000,000 units at a retail price of 400
each.

The cost of carrying snow boards is 80 per year. Studies show that it costs Mountain Snow
250 to prepare and receive an order. What is the EOQ?
A) 2,500 B) 1,850 C) 2,750 D) 2,000

Question 2

L9 Corp. has a beta of 1.34 and an expected return of 21. If the market return is 17, what is the return you would expect to get from a T-Bill?

A) 5.24
B) 8.64
C) 3.41
D) 2.16
E) 4.50