A breakfast cereal manufacturer purchases rolled oats from a supplier based in North Dakota. The supplier charges $1.2 per pound (lb) and $35 per delivery (no matter how much is delivered). The manufacturer's annual holding cost per is 35% of the purchase cost per pound (lb) of rolled oats. The manufacturer uses 5000 pounds (lbs) of rolled oats every week for the production of cereal. Assume that there are 52 weeks in a year. Required:
How many gallons should the cereal manufacturer order from his supplier with each order to minimize the cost of ordering and holding (Economic Order Quantity)?

Match each definition in column 1 with a vocabulary word from column 2." some of the entries in column 2 do not apply costs which do not change with the level of output costs which change with the level of output the change in total costs resulting from an increase in output by one unit function showing the quantities of a particular good demanded at a range of price when the quantity supplied of a good is greater than the quantity demanded when the quantity demanded for a particular good is greater than the quantity supplied the price and quantity determined in a market when the supply equals the demand when revenue exceeds costs when costs exceeds revenue output where revenue = costs