Economic order quantity formulas seek to balance _____

An 8 year project is estimated to produce a product with the following information: selling price = $80 per unit; variable costs are $65 per unit; fixed costs are $20,000; required return is 10%; initial investment = $200,000. Calculate the accounting break-even.

A) 3,833 B) 4,833 C) 4,000 D) 3,000

At December 30, year 3, Vida Co. had cash of $200,000, a current ratio of 1:5:1 and a quick ratio of 5:1. On December 31, year 3, all cash was used to reduce A/P. how did these cash payments affect the ratios?

a. increase ; decrease b. increase ; no effect c. decrease ; increase d. decrease ; no effect