Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Problem 2: Marissa started a mask company in the pandemic and has been able to sell them very steadily. Her calculation indicate that she will
Problem 2: Marissa started a mask company in the pandemic and has been able to sell them very steadily. Her calculation indicate that she will sell around 3.1130 a year. The wholesale cost oi'the mask is about $5, and because she used her credit card to nance die costs. she uses a 2% interest rate. a. If Marissa wants to order only about 20 times a year, how many should she order? b. It turns out that the supplier will charge a shipping cost. call it an "ordering cost". of $10 per order. lfthis is the case. what is the optimal order quantity that Marissa should request? c. There is another provider that is willing to send Marissa orders of l masks. What is the most that Marissa should pay as "ordering cost"
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started