Ann Chovies, owner of the Perfect Pasta Pizza Parlor, uses 160 pounds of pepperoni each day in preparing pizzas. Order costs for pepperoni are $10.00 per order, and carrying costs are 4 cents per pound per day. Lead time for each order is three days, and the pepperoni itself costs $3.00 per pound. What is the economic order quantity for pepperoni?

Select one:

a. 282 pounds

b. 292 pounds

c. 160 pounds

d. 262 pounds

e. 120 pounds

Fabricating Division can transfer its units to Assembly Division or sell them to external customers. An appropriate transfer price between two divisions of The Stark Company can be determined from the following data:

Fabricating Division:
Market price of the subassembly	$50
Variable cost of the subassembly	$20
Excess capacity (in units)	1,000
Assembly Division:
Number of units needed	900

What is the natural bargaining range (minimum transfer price and maximum transfer price) for the two divisions?

Select one:

a. $50 is the only acceptable price.

b. Any amount less than $50.

c. Between $20 and $50.

d. $20 is the only acceptable price.

e. Between $50 and $70.