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Home Goods Inc. sells floor lamps. They sell 50,000 lamps per year, have a carrying cost of 5%, a purchase price of $2.50 and a
Home Goods Inc. sells floor lamps. They sell 50,000 lamps per year, have a carrying cost of 5%, a purchase price of $2.50 and a fixed ordering cost of $135 per order. Home Goods Inc sells their lamps for $23.05. If the supplier offers a 1% discount for order quantities of 10,000 units or more, what would be the total annual savings benefit?
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