When two or more organizations combine to become one, it is referred to as a merger.
What are the 3 types of mergers?
Vertical, horizontal, and conglomerate mergers are the three basic forms of mergers.
- Horizontal Merger- Companies at the same stage in the same industry unite in a horizontal merger to cut costs, increase product options, or lessen competition.
- Vertical Merger- In a vertical merger, a business acquires another business in the same sector that is frequently active at an earlier or later point in the manufacturing or sales process.
- Conglomerate Mergers -To lower risk, conglomerates consolidate firms that are unconnected to one another.
Learn more about Mergers: brainly.com/question/16557059
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Answer:
Annie should increase the order size to 148 bottles per order and she will be able to save $91.85 per year.
Explanation:
we must calculate the economic order quantity (EOQ) in order to determine the size of the order that reduces costs:
EOQ = √[(2 x S x D) / H]
- S = cost per order = $35
- D = annual demand = 2,500 bottles of shampoo
- H = holding cost per unit) = $8
EOQ = √[(2 x 35 x 2,500) / 8] = √(175,000 / 8) = √21,875 = 147.90 ≈ 148 bottles of shampoo
total cost when ordering 100 bottles = (25 orders x $35) + (100/2 x $8) = $875 + $400 = $1,275
total cost when ordering 148 bottles = (16.89 orders x $35) + (148/2 x $8) = $591.15 + $592 = $1,183.15
Annie will save $1,275 - $1,183.15 = $91.85 per year
A. True bc the maker can always affect the economic decision as a whole
