Use Scenario 16.7 to answer the following.How many gross of diploma covers should be ordered from the bookstore?

A) 3
B) 4
C) 5
D) 6

Question

Use Scenario 16.7 to answer the following.How many gross of diploma covers should be ordered from the bookstore?A) 3B) 4C) 5D) 6

Maykala Jackson · Accepted Answer

Final Answer : C, Explanation :  To calculate the number of diploma covers needed, we can use the formula:Number of diploma covers = Number of students + Safety stockSafety stock is the extra covers required in case of unexpected events such as damaged or lost covers. A common safety stock percentage is 10%.So,Number of diploma covers = 850 + 10% of 850Number of diploma covers = 850 + 85Number of diploma covers = 935Now we need to calculate the number of boxes required:Number of boxes = Number of diploma covers / Number of covers per boxNumber of boxes = 935 / 144Number of boxes = 6.49We can't order a fraction of a box, so we need to round up to the nearest whole number. Therefore, we need to order 7 boxes from the bookstore.Cost of ordering from the bookstore = 7 boxes x $2,000 per boxCost of ordering from the bookstore = $14,000Now we need to calculate the number of additional covers required:Number of additional covers = Number of diploma covers - Number of covers ordered from the bookstoreNumber of additional covers = 935 - (7 x 144)Number of additional covers = 47We need to order 47 additional covers on the black market.Cost of ordering from the black market = 47 x $15 per coverCost of ordering from the black market = $705Total cost of diploma covers = Cost of ordering from the bookstore + Cost of ordering from the black marketTotal cost of diploma covers = $14,000 + $705Total cost of diploma covers = $14,705Instead of ordering 6 boxes and paying for 288 covers on the black market, it's better to order 5 boxes and pay for 215 covers on the black market. This saves $1,605 (the cost of one box). Therefore, the best choice is to order 5 gross of diploma covers (5 boxes from the bookstore) and 215 additional covers on the black market.

Use Scenario 16.7 to answer the following.How many gross of diploma covers should be ordered from the bookstore?

A) 3
B) 4
C) 5
D) 6

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