A store estimates their holding costs at 34% and incurs a fixed cost of $62.00 for each order. Demand for an item is 1,975 units per year. A supplier offers a price of $14.00 each for quantities of 375 or fewer and a price of $13.16 for quantities over 375 units.

A store estimates their holding costs at 34% and incurs a fixed cost of $62.00 for each order. Demand for an item is 1,975 units per year. A supplier offers a price of $14.00 each for quantities of 375 or fewer and a price of $13.16 for quantities over 375 units