A company is presently ordering on the basis of an EOQ. The demand is 10,000 units a

Question:

A company is presently ordering on the basis of an EOQ. The demand is 10,000 units a year, unit cost is $10, ordering cost is $30, and the cost of carrying inventory is 20%. The supplier offers a discount of 3% on orders of 1000 units or more. What will be the saving

(loss) of accepting the discount?

LO.1

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