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The printshop at State University purchases from a vendor sweatshirts emblazoned with the school name and logo. The vendor sells the sweatshirts to the printshop
The printshop at State University purchases from a vendor sweatshirts emblazoned with the school name and logo. The vendor sells the sweatshirts to the printshop for $38 a piece. The cost to the printshop for placing an order is $120, and the carrying cost is 25% of the purchase price. The printshop manager estimates that 1, 700 sweatshirts will be sold during the year. The vendor has offered the printshop the following volume discount schedule: The printshop manager wants to determine the printshop's optimal order quantity, given the foregoing quantity discount information. Determine carrying cost as a percentage of purchase price. Calculate EOQ for each discount price Calculate TC for each EOQ What is the printshop's optimal order quantity
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