n the Sam’s Bookstore problem, the quantity discountstructure is such that all the units ordered have the sameunit cost. For example, if the order quantity is 2500,then each unit costs $22.25. Sometimes the quantitydiscount structure is such that the unit cost for the firstso many items is one value, the unit cost for the next somany units is a slightly lower value, and so on. Modifythe model so that Sam’s pays $24 for units 1 to 1500,$23 for units 1501 to 2500, and $22 for units 2501 andabove. For example, the total cost for an order quantityof 2750 is 1500(24) 1 1000(23) 1 250(22). (Hint: UseIF functions, not VLOOKUP.)
n the Sam’s Bookstore problem, the quantity discountstructure is such that all the units ordered have the sameunit cost. For example, if the order quantity is 2500,then each unit costs $22.25. Sometimes the quantitydiscount structure is such that the unit cost for the firstso many items is one value, the unit cost for the next somany units is a slightly lower value, and so on. Modifythe model so that Sam’s pays $24 for units 1 to 1500,$23 for units 1501 to 2500, and $22 for units 2501 andabove. For example, the total cost for an order quantityof 2750 is 1500(24) 1 1000(23) 1 250(22). (Hint: UseIF functions, not VLOOKUP.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
n the Sam’s Bookstore problem, the quantity discount
structure is such that all the units ordered have the same
unit cost. For example, if the order quantity is 2500,
then each unit costs $22.25. Sometimes the quantity
discount structure is such that the unit cost for the first
so many items is one value, the unit cost for the next so
many units is a slightly lower value, and so on. Modify
the model so that Sam’s pays $24 for units 1 to 1500,
$23 for units 1501 to 2500, and $22 for units 2501 and
above. For example, the total cost for an order quantity
of 2750 is 1500(24) 1 1000(23) 1 250(22). (Hint: Use
IF functions, not VLOOKUP.)
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