Garden variety flower shop uses 890 clay pots a month. the pots are purchased at $3.70 each. annual carrying costs per pot are estimated to be 50 percent of cost, and ordering costs are $30 per order. the manager has been using an order size of 1,000 flower pots. a. what additional annual cost is the shop incurring by staying with this order size?

Which of the following statements is correct? stockholders should generally be happier than bondholders to have managers invest in risky projects with high potential returns as opposed to safe projects with lower expected returns. potential conflicts between stockholders and bondholders are increased if a firm's bonds are convertible into its common stock. takeovers are most likely to be attempted if the target firm’s stock price is above its intrinsic value. one advantage of operating a business as a corporation is that stockholders can deduct their pro rata share of the taxes the firm pays, thereby eliminating the double taxation investors would face in a partnership.