Question
Suppose Stanley's Office Supply purchases 80,000 boxes of pens every year. Ordering costs are $133.95 per order and carrying costs are $0.95 per box. Moreover,
Suppose Stanley's Office Supply purchases 80,000 boxes of pens every year. Ordering costs are $133.95 per order and carrying costs are $0.95 per box. Moreover, management has determined that the EOQ is 4,749.74 boxes.Note:The ordering costs and EOQ differ from problem 1.The vendor now offers a quantity discount of $0.04 per box if the company buys pens in order sizes of 10,000 boxes. Determine the before-tax benefit or loss of accepting the quantity discount. (Assume the carrying cost remains at $0.95 per box whether or not the discount is taken.)Enter your answer rounded to two decimal places.Do not enter $ or comma in the answer box.For example, if your answer is $12,300.456 then enter as 12300.46 in the answer box.
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