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Now, assume Western Jeans Company's inventory carrying cost per yard of denim is 29% of the price per yard and the price of denim
Now, assume Western Jeans Company's inventory carrying cost per yard of denim is 29% of the price per yard and the price of denim from the Cumberland Textile Mills is $1.20 per yard. Now suppose textile mill will give discounted price of $1.10 per yard if it purchases 20,000 yards, $1.00 per yard if it purchases 30,000 yards, and $0.90 per yard if it purchases 70,000 yards per order. What should be the order quantity? What should be the order quantity? O 20,000 yards O 30,000 yards O 50,000 yards O 70,000 yards Assuming the same all-unit-discount prices as above, what price per yard it should buy denim for? $1.20 O $1.00 O $0.90 $1.05 Assuming the same all-unit-discount prices as above, how much cost Western Jeans Company would reduce with best discount policy versus not taking any discount? $4,605 O $0 O $2,925 O $5,557
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