1.Lisa's Tea Room sells 250 cupcakes every week. It costs $1.50 to carry and display each cupcake. The fixed cost of ordering more cupcakes is $100 per order. What is the economic order quantity?

• 1639

• 1317

• 1588

• 756

• 250

2.Yoko Inc. produces Halloween costumes. The average price for one of its costumes is $200, and the variable cost of producing it is $100. The company's monthly required rate of return is 2%, and a credit period of one month. What is the break-even probability of default before the company would reject granting credit to a new one-time customer?

• 41%

• 49%

• 51%

• 39%

• 55%