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AutoAudio sells and installs automobile sound systems. AutoAudio has very popular CD changer that it sells. Annual demand for the changer is 520 units. Their
AutoAudio sells and installs automobile sound systems. AutoAudio has very popular CD changer that it sells. Annual demand for the changer is 520 units. Their supplier offers the following prices to AutoAudio: Quantit Price Per Unit 1-60 units $210 61-120 units $200 Over 120 units $180 Carrying costs are 20 percent per year and ordering cost is $50 per order. a) What is the basic economic order quantity for each of the three price ranges? b) In what price range is the E00? 0) Which order quantity will provide the lowest total cost
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