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Q2: A fifth company, Delaware Mills, has submitted a bid to supply up to 1,000 furniture sets at a cost of $2,530 per set
Q2: A fifth company, Delaware Mills, has submitted a bid to supply up to 1,000 furniture sets at a cost of $2,530 per set and a one-time delivery charge of $9,000. However, if the firm purchases between 1,000 and 1,500 furniture sets from Delaware Mills, then Delaware Mills will charge the firm only $2,430 for any and all additional furniture sets beyond the 1,000, and with an additional delivery charge of only $7,000. (This is an extra-unit discount case.) Incorporate this new bid into your model.
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