A small factory produces toilet paper. The annual demand is 360,000 units, and the company produces toilet paper in batches. On average, the company can produce 3,000 units a day during the production period. The cost to set up the production process is $100, and it costs the company $10 to carry 100 toilet paper units for one year. How many toilet paper units should the company produce in each batch? (Assume 360 days per year)

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.