ACME has a demand of 30.000 units / week (9 high demand months of the year) and 12.000 units / week (3 low demand months of the year). The working fiscal year of ACME is made of 12 months of 4 weeks each

ACME buys the components necessary to produce one unit at 0,10$

Current situation

ACME works with annual standards: issues purchase orders of 2.500 units/order, and uses permanent personnel, thus having the following operational costs,

Cost of ordering CE = 120 $/order Cost of warehousing CW = 2 $/unit/week ACME cannot apply different selling price in different months: this means that the selling price must remain fixed for the whole year

What price should ACME fix to deliver a 30% operations margin, defined as:

(sales purchases operations costs) / sales x 100 (%)

New situation

Now ACME has incorporated an operations manager from UEM, who has implemented two measures: first using the ops optimization methods to manage inventories, and second to balance with different dedication the personnel between the high and low demand months. Based on these two measures, ACME can estimate their operations costs per season as follows,

High months: Cost of ordering CE = 120 $/order Cost of warehousing CW = 2 $/unit/week Low months: Cost of ordering CE = 80 $/order Cost of warehousing CW = 1,2 $/unit/week ACME cannot apply different selling price in different months: this means that the selling price must remain fixed for the whole year

What optimal new price should ACME fix to deliver a 30% operations margin, defined as:

(sales purchases operations costs) / sales x 100 (%)