Suppliers frequently provide quantity discounts to customers who place large orders. An incremental quantity discount provides a
Question:
Suppliers frequently provide quantity discounts to customers who place large orders. An incremental quantity discount provides a discount to all units purchased beyond the applicable price breaks, but units purchased before the price breaks still pay their respective higher prices. Consider the following incremental quantity discount schedule:
Size of Order .............................................. Price per Unit
0−400 ............................................................ units $40.00
401−1200 ...................................................... units $40.00 for the first 400, and $38.00 after that
≥ 1201 units .................................................. $40.00 for the first 400, $38.00 for the next 800,
and $30.00 for any purchased beyond 1200
Build an Excel model that returns the total purchase amount and the average price per unit for any supplied order size.
Step by Step Answer:
Managerial Decision Modeling Business Analytics With Spreadsheet
ISBN: 9781501515101
4th Edition
Authors: Nagraj Balakrishnan, Barry Render, Ralph Stair, Charles Munson