Determine Optimal Order Quantity with Price Breaks and Constraints: Weldone Supply offers discounts for quantity orders according
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Determine Optimal Order Quantity with Price Breaks and Constraints: Weldone Supply offers discounts for quantity orders according to the following schedule:
To decide whether to take advantage of the price-break system. you review your records and find that the order cost for this product is $400 and the carrying costs are $4. Usage amounts to 20,000 units per year. Your company has space to store up to 15,000 units. The cost of capital effect of the discount may be ignored.
Required: Prepare a schedule showing the optimal order quantity.
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