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A bakery buys sugar from a big distributor to use in baking cakes. Typically, they use 3673 bags of sugar in a year. The price
A bakery buys sugar from a big distributor to use in baking cakes. Typically, they use 3673 bags of sugar in a year. The price of sugar is typically $11 per bag. The cost to the bakery for placing an order is $29, and the annual carrying cost is $18 per bag. The distributor has offered the bakery the following volume discount schedule:
We are trying to find how many bags of sugar should the store order. whenever they place a new order of sugar.Assume 364 days a year and 52 weeks a year. IMPORTANT: Note, the discounts off of original price are reported. You need to calculate the actual prices. Keep two decimal places in your calculations.If we ignore the discounts, how many bags of sugar should we order? Fill in the blanks Step by Step Solution
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