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:

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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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Cost Accounting

ISBN: 9780256069198

3rd Edition

Authors: Edward B. Deakin, Michael Maher

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