What is the annual demand for tires in the mountain bikes scenario?

Prepare for the PHFO Quantitative Analysis For Business Exam. Study with flashcards, multiple choice questions, hints, and explanations to ensure confidence and success in your exam!

Multiple Choice

What is the annual demand for tires in the mountain bikes scenario?

Explanation:
Annual demand is found by summing all tires needed over the year. In this mountain bikes scenario, you convert any monthly usage into a yearly figure by multiplying by 12. If the scenario states a monthly demand of 200 tires, then 200 × 12 equals 2,400 tires per year. So the key idea is to take the monthly needs and aggregate them across all twelve months to get the annual total. If monthly demand varies by season, you’d add each month’s figure (or use quarterly totals) to arrive at the same annual total. The other totals would imply different monthly usage—for example, 1,800 suggests about 150 per month, 2,600 about 217 per month, and 3,000 about 250 per month—which would not match the given monthly demand.

Annual demand is found by summing all tires needed over the year. In this mountain bikes scenario, you convert any monthly usage into a yearly figure by multiplying by 12. If the scenario states a monthly demand of 200 tires, then 200 × 12 equals 2,400 tires per year. So the key idea is to take the monthly needs and aggregate them across all twelve months to get the annual total. If monthly demand varies by season, you’d add each month’s figure (or use quarterly totals) to arrive at the same annual total. The other totals would imply different monthly usage—for example, 1,800 suggests about 150 per month, 2,600 about 217 per month, and 3,000 about 250 per month—which would not match the given monthly demand.

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