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Order Quantity Price per Unit O to 200 $4.00 201 to 2,000 $3.50 2,001 or more $3.25

Order Quantity Price per Unit O to 200 $4.00 201 to 2,000 $3.50 2,001 or more $3.25

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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The University Bookstore at a prestigious private university
buys mechanical pencils from a wholesaler. The wholesaler
offers discounts for large orders according to the following
price schedule:

The bookstore expects an annual demand of 2,500 units. It
costs $10 to place an order, and the annual cost of holding a
unit in stock is 30 percent of the unit’s price. Determine the
best order quantity

Order Quantity Price per Unit O to 200 $4.00 201 to 2,000 $3.50 2,001 or more $3.25
Transcribed Image Text:Order Quantity Price per Unit O to 200 $4.00 201 to 2,000 $3.50 2,001 or more $3.25
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