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Sunbright Citrus Products produces orange juice, orange juice and other citrus - related products. Sun bright sources fruit concentrates from a cooperative in Orlando, which

Sunbright Citrus Products produces orange juice, orange juice and other citrus-related products. Sun bright sources fruit concentrates from a cooperative in Orlando, which is made up of about 50 farmers. The cooperative sells a minimum of 100 cans of concentrated fruit to citrus processors like Sunbright. The cost per can is $9.90. Last year, the cooperative developed the bonus program as an incentive, to benefit its large customers if they purchase larger quantities. It works as follows: If 200 cans of concentrate are purchased, 10 free cans are included in the deal. In addition, the names of the organizations that purchase concentrate participate in the raffle for a new personal computer, which has a value of about $3,000 and there are currently about 1,000 companies eligible for said raffle. For the purchase of 300 cans of concentrate, the cooperative will give 30 cans for free and will also place the company's name in the personal computer raffle. When the quantity is greater than 400 cans of concentrate, 40 free cans are included with the order. In addition, the company will also be on the raffle list for a personal computer and a trip.
free for two people. The value of the trip is approximately $5,000.800 companies are expected to qualify for the trip raffle.
Sunbright estimates its annual demand for fruit concentrate will be 1,000 cans. Additionally, he estimates that his ordering cost is $10, while his holding cost is 10% or about $1 per unit. The company is intrigued by the incentive bonus plan. If the company decides they will keep the computer or trip if they win, what should they do?
The answer to arrive is: order 200 units

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