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Tommy's Machine shop purchases 2,500 units a year of a particular product. The supplier offers the following discounts Quantity Unit price 1 - 699 $15

Tommy's Machine shop purchases 2,500 units a year of a particular product. The supplier offers the following discounts

Quantity

Unit price

1 - 699

$15

700 or more

$12

The order cost is $250 per order and the holding cost is 30% per unit per year.

Calculate the optimal order size and its total cost.

Note: Round up the order size and total cost.

Select one:

a.Q=700 units and TC=$ 32,153

b.None of the provided answers.

c.Q=528 units and TC=$ 28,974

d.Q=528 units and TC=$ 39,872

e.Q=700 units and TC=$ 44,284

f.Q=590 units and TC=$ 42,325

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