Prentice Hall wants to reduce a large stock of Quantitative Analysis books from their warehouse. They have offered the JU Bookstore a quantity discount pricing schedule, as follows: QUANTITY 1- 99 100+ PRICE $150 $148 Assuming the annual demand rate is 400 books, the ordering cost is $20, and the annual holding cost is $3 per textbook, answer the following: 7a) What should your order size be if you want to minimize total cost? 7b) What is the minimum TOTAL ANNUAL COST?

Prentice Hall wants to reduce a large stock of Quantitative Analysis books from their warehouse. They have offered the JU Bookstore a quantity discount pricing schedule, as follows: QUANTITY 1- 99 100+ PRICE $150 $148 Assuming the annual demand rate is 400 books, the ordering cost is $20, and the annual holding cost is $3 per textbook, answer the following: 7a) What should your order size be if you want to minimize total cost? 7b) What is the minimum TOTAL ANNUAL COST?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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