In the Sams Bookstore problem, the quantity discount structure is such that all the units ordered have
Question:
In the Sam’s Bookstore problem, the quantity discount structure is such that all the units ordered have the same unit cost. For example, if the order quantity is 2500, then each unit costs $22.25. Sometimes the quantity discount structure is such that the unit cost for the first so many items is one value, the unit cost for the next so many units is a slightly lower value, and so on. Modify the model so that Sam’s pays
$24 for units 1 to 1500, $23 for units 1501 to 2500, and $22 for units 2501 and above. For example, the total cost for an order quantity of 2750 is 1500(24) 1000(23) 250(22). (Hint: Use IF functions, not VLOOKUP.)
Skill-Extending Problems
Step by Step Answer:
Practical Management Science
ISBN: 9781111531317
4th Edition
Authors: Wayne L. Winston, S. Christian Albright