A restaurant uses 120 000 take-away boxes per year. Carrying costs are 20 cents per box &
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Question:
A restaurant uses 120 000 take-away boxes per year. Carrying costs are 20 cents per box & ordering costs are R56.00. The following price schedule applies:
No. of boxes | Price per Box (R's) |
1000 - 1999 | 1.25 |
2000 - 4999 | 1.20 |
5000 - 9999 | 1.15 |
10000 or more | 0.80 |
Required:
2.2.1 Calculate the total cost of take-away boxes. (5 marks ) 2.2.2 Apply the discounted values and recommend which option you would choose. (10 marks )
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