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Answer to Question #56293 in Financial Math for paul daniel
Question #56293
3. Assume that the following quantity discount schedule is appropriate:
Order Size Discount(%) Unit Cost
0 to 49 0 $30.00
50 to 99 5 $28.50
100 or more 10 $27.00
If annual demand is 120 units, ordering costs are $20.00 per order, and the annual
Holding rate is 25%, what order quantity would you recommend?
Order Size Discount(%) Unit Cost
0 to 49 0 $30.00
50 to 99 5 $28.50
100 or more 10 $27.00
If annual demand is 120 units, ordering costs are $20.00 per order, and the annual
Holding rate is 25%, what order quantity would you recommend?
Expert's answer
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