Question
North Manufacturing has a demand for 1,000 pumps each year. The cost of a pump is $50. It costs North Manufacturing $40 to place an
North Manufacturing has a demand for 1,000 pumps each year. The cost of a pump is $50. It costs North Manufacturing $40 to place an order, and the carry- ing cost is 25% of the unit cost. If pumps are ordered in quantities of 200, North Manufacturing can get a 3% discount on the cost of the pumps. Should North Manufacturing order 200 pumps at a time and take the 3% discount?
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Accounting and Finance An Introduction
Authors: Peter Atrill, Eddie McLaney
8th edition
129208829X, 1292088297, 978-1292088297
