An office supply company is attempting to determine the order quantity for laser printer toner cartridges which are sold to local businesses. Annual demand is 20,000 units and each cartridge costs the store $25. It costs $30 to place an order and the inventory carrying cost rate is 25% of the value of the item. The following spreadsheet has been set up to solve the problem. What cell is the variable cell in this problem?
A)B3
B)B7
C)B9
D)B11

Question

An office supply company is attempting to determine the order quantity for laser printer toner cartridges which are sold to local businesses. Annual demand is 20,000 units and each cartridge costs the store $25. It costs $30 to place an order and the inventory carrying cost rate is 25% of the value of the item. The following spreadsheet has been set up to solve the problem. What cell is the variable cell in this problem? 
A)B3 
B)B7 
C)B9 
D)B11

Quizplus · Accepted Answer

The variable in this problem is the order quantity, which is represented by the cell B9. This is because the order quantity is the value that we are trying to determine in order to minimize the total cost of inventory.

An Office Supply Company Is Attempting to Determine the Order