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52 5.2 A textile manufacturing company orders 50 000 kilograms of regenerated fibres annually from a supplier at R30 per kilogram. The supplier offered

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52 5.2 A textile manufacturing company orders 50 000 kilograms of regenerated fibres annually from a supplier at R30 per kilogram. The supplier offered the company different price discounts to attract large orders. The holding cost per unit per year is 15% of the unit cost and the ordering cost is R45 per order. The price structures are shown below: Quantity (kgs) Unit price 1-1000kg R30 1001-2000kg R28 2001kg+ R26 5.2.1 Which price structure must the company select to keep costs low? Show full calculations (10) 5201

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