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The company is offered a 5 % discount ( discounted price is $ 1 . 9 0 ) for orders of 5 0 0 0

The company is offered a5% discount (discounted price is $ 1.90) for orders of 5000 and
over. Order cost and holding cost remain at $150 per order and $1.50 respectively. If the
company orders 5000 items per order, calculate the:
i. Number of orders per annum (1 mark)
ii. Average stock (1 mark)
iii. Annual stock holding cost (2 marks)
iv. Annual order cost (2 marks)
v. Annual inventory cost (2 marks)
vi. Total annual cost of items and inventory

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