A drugstore sells 30 bottles of antibiotics per week. Each time it orders antibiotics, there is a

Question:

A drugstore sells 30 bottles of antibiotics per week. Each time it orders antibiotics, there is a fixed ordering cost of $10 and a cost of $10 per bottle. Assume that the store’s cost of capital is 10%, there is no storage cost, and antibiotics spoil and cannot be sold if they spend more than one week in inventory. When the drugstore places an order, how many bottles of antibiotics should it order?

Cost Of Capital
Cost of capital refers to the opportunity cost of making a specific investment . Cost of capital (COC) is the rate of return that a firm must earn on its project investments to maintain its market value and attract funds. COC is the required rate of...