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A company is currently using a supplier to make required components. The supplier changes an annual setup cost of $5,000 regardless of the number of

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A company is currently using a supplier to make required components. The supplier changes an annual setup cost of $5,000 regardless of the number of parts the company purchases in a single year. In addition to this annual setup fee, the supplier uses the following pricing scheme Sunil 1 - 100 $1,000 each 101 - 500 $800 each 501 - 750 $600 each 751 or more $500 each Question: If the company purchases 2.000 components from this supplier in one year, what is the total amount it will expect to pay? (assuming no taxes or other fees or charges) Previous Next

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