We need 1,000 electric drills per year. The ordering cost for these is $100 per order and
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We need 1,000 electric drills per year. The ordering cost for these is $100 per order and the carrying cost is assumed to be 40% of the per unit cost. In orders of less than 120, drills cost $78; for orders of 120 or more, the cost drops to $50 per unit.
Should we take advantage of the quantity discount?
Show all work used to answer problem. May be shown in excel.
Related Book For
Probability and Statistics
ISBN: 978-0321500465
4th edition
Authors: Morris H. DeGroot, Mark J. Schervish
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