L4M7 Exam Dumps | A supermarket calculates that the average holding cost for an item is $1.50 per cubic meter per day.

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Question 16/87

A supermarket calculates that the average holding cost for an item is $1.50 per cubic meter per day. A beer pallet which has volume of 0.5 cubic meter will be stored for 5 days. What is the holding cost of this beer pallet?

A. $4.00

B. $4.50

C. $4.25

D. $3.75

Correct Answer: D

The holding cost per day of the beer pallet is equal to 1.50/2=0.75
The beer pallet is stored for 5 days, the total holding cost is: 0.75*5=3.75.
LO 2, AC 2.2

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