Acme Distributors has an annual demand for an airport metal detector of 1,575 units. The unit cost of a typical detector to Acme is $333.00. Holding cost is estimated to be 15.5% of the unit cost, and the ordering cost is $25 per order. a. What is the optimal order quantity (EOQ), given the current ordering policy (without price breaks)? [ Select] b. What is the total cost of the current ordering policy (including the unit cost? [Select] If Karen Powell, the owner, orders in quantities of 360 or more she can get a 5% discount on the cost of the detectors. c. What price should Acme pay per unit, considering the discount? $ [Select] d. What is the total cost at the discounted behavior? $ [Select] e. What option should Karen Powell choose? [ Select]

Acme Distributors has an annual demand for an airport metal detector of 1,575 units. The unit cost of a typical detector to Acme is $333.00. Holding cost is estimated to be 15.5% of the unit cost, and the ordering cost is $25 per order. a. What is the optimal order quantity (EOQ), given the current ordering policy (without price breaks)? [ Select] b. What is the total cost of the current ordering policy (including the unit cost? [Select] If Karen Powell, the owner, orders in quantities of 360 or more she can get a 5% discount on the cost of the detectors. c. What price should Acme pay per unit, considering the discount? $ [Select] d. What is the total cost at the discounted behavior? $ [Select] e. What option should Karen Powell choose? [ Select]

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

What effect might a decrease in the demand for high definition televisions have on the short-run average total costcurve for this product?
Problem One: The fixed cost for a company is 1200 OMR and the variable cost is 2 OMR per 100 unit. If demand function is given by p = L Determine the quantity that the company must sell to cover the fixed costs.
Math 1
A bag factory produces 30 units of output. Its average fixed cost (AFC) = $32, average total cost (ATC) = $45, and marginal cost (MC) = $25. The shoe factory’s total variable cost is
You have charged your client $8,650 on a cost plus percentage purchase of two sofas, two lounge chairs, and three occasional tables. If the occasional tables were 30% of the total client cost, and all cost the same amount, what was the net price of these tables at a 15% markup? Explain.
The profit of a company, in dollars, is the difference between the company's revenue and cost. The cost, C(x), and revenue, R(x), are functions for a particular company. The x represents the number of items produced and sold to distributors. C(x)=-2300+40x R(x)=840x-x² a) Determine and simplify the profit function. Write your answer in descending order. P(X)-
Assume that the linear cost and revenue models apply. An item costs $6 to make. If fixed costs are $2400 and profits are $2100 when 100 items are made and sold, find the revenue equation. (Let x be the number of items.) R(x) =
4 parts pls
Consider an airline's decision about whether to cancel a particular flight that hasn't sold out. The following table provides data on the total cost of operating a 100-seat plane for various numbers of passengers. Total Cost Number of Passengers (Dollars per flight) 40,000 10 60,000 20 65,000 30 68,000 40 70,000 50 71,000 60 72,500 70 73,500 80 74,000 90 74,300 100 74,500 Given the information presented in the previous table, the fixed cost to operate this flight is s At each ticket price, a different number of consumers will be willing to purchase tickets for this flight. Assume that the price of a flight is fixed for the duration of ticket sales. Use the previous table as well as the following demand schedule to complete the questions that follow. Price Quantity Demanded (Dollars per ticket) (Tickets per flight) 1,000 700 30 400 90 200 100
this table is tricky
Given Cost and Price (demand) functions C(q) = 110q + 45000 and p(q) = - 2.8q + 800, what profit can be earned if the price is set to be $550 per item? U The profit is $ 1,?9 (Round to the nearest cent.) A company produces a special new type of TV. The company has fixed costs of $499,000, and it costs STT00 to produce each TV. The company projects that if it charges a price of $2300 for the TV, it will be able to sell 850 TVs. If the company wants to sell 900 TVs, however, it must lower the price to $2000. Assumo a linear demand. What is the marginal profit if 200 TVs are produced It is $ 0 per item. (Round answer to nearest dollar.)
Country Motorbikes Incorporated finds that it costs $400 to produce each motorbike, and that fixed costs are $1300 per day. The price function is p(x)= 700-5x, where p the price (in dollars) at which exactly x motorbikes will be sold. Find the quantity Country Motorbikes should produce and the price it should charge to maximize profit. Also find the maximum profit. 40 quantity price profit motorbikes Enter a number.