Suppose a firm currently places orders in batches of 1000 units every month. The ordering costs are $250/order. The supplier sells the units to the firm at the rate of $10/unit. In addition, the cost of capital is 20% per annum. Which of the following statements is true? Group of answer choices The current order quantity minimizes the sum of inventory holding and ordering costs Annual inventory holding costs are higher that annual ordering costs If the firm increases its order quantity from the current level, its ordering costs will increase Annual ordering costs are higher than annual inventory holding costs None of the above

Analyzing operational changes operating results for department b of delta company during 2016 are as follows: sales $540,000 cost of goods sold 378,000 gross profit 162,000 direct expenses 120,000 common expenses 66,000 total expenses 186,000 net loss $(24,000) suppose that department b could increase physical volume of product sold by 10% if it spent an additional $18,000 on advertising while leaving selling prices unchanged. what effect would this have on the department's net income or net loss? (ignore income tax in your calculations.) use a negative sign to indicate a net loss answer; otherwise do not use negative signs with your answers. sales $answer cost of goods sold answer gross profit answer direct expenses answer common expenses answer total expenses answer net income (loss) $answer