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Adam runs a bakery and uses 200 pounds of flour every week (assuming 50 weeks in a year). The purchasing cost of each pound of
Adam runs a bakery and uses 200 pounds of flour every week (assuming 50 weeks in a year). The purchasing cost of each pound of flour is $6, and there is a delivery fee of $25 per order. The annual holding cost rate is 80%. Adam's supplier has offered him a special deal where the purchasing cost would reduce to $5.2 per pound if he orders at least 300 pounds per order. What is the annual purchasing cost saving if Adam can get the discount? $6,400 $7,200 $8,000 $8,800
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