A car manufacturer has holding costs of 37%. One of the items needed in the factory is door handles. For every order, the facotry incurs a fixed cost of $59.00. The manufacturer needs annually 1,900 of the door handles. The door handles supplier offers a price of $11.00 each for quantities of 350 or fewer and a price of $10.23 for quantities over 350 units. Round your answer to the nearest integer value. How many units should the manufacturer order at one time? units What is the total annual cost at this order point?

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
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A car manufacturer has holding costs of 37%. One of the items needed in the
factory is door handles. For every order, the facotry incurs a fixed cost of
$59.00. The manufacturer needs annually 1,900 of the door handles. The
door handles supplier offers a price of $11.00 each for quantities of 350 or
fewer and a price of $10.23 for quantities over 350 units.
Round your answer to the nearest integer value.
How many units should the manufacturer order at one time?
units
What is the total annual cost at this order point?
Transcribed Image Text:A car manufacturer has holding costs of 37%. One of the items needed in the factory is door handles. For every order, the facotry incurs a fixed cost of $59.00. The manufacturer needs annually 1,900 of the door handles. The door handles supplier offers a price of $11.00 each for quantities of 350 or fewer and a price of $10.23 for quantities over 350 units. Round your answer to the nearest integer value. How many units should the manufacturer order at one time? units What is the total annual cost at this order point?
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