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PUC Enterprise has annual demand for corporate finance textbook of 500. The cost of the textbook is 40$. Carrying Cost estimated to be 20% of unit cost and the ordering cost is $5 per order. If PUC order in quantities of 30 or more it can get a 10% discount on the cost of the book. Should PUC take the quantity discount? Assume the demand is constant

PUC Enterprise has annual demand for corporate finance textbook of 500. The cost of the textbook is 40$. Carrying Cost estimated to be 20% of unit cost and the ordering cost is $5 per order. If PUC order in quantities of 30 or more it can get a 10% discount on the cost of the book. Should PUC take the quantity discount? Assume the demand is constant

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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PUC Enterprise has annual demand for corporate finance textbook of 500. The cost of the textbook is 40$. Carrying Cost estimated to be 20% of unit cost and the ordering cost is $5 per order. If PUC order in quantities of 30 or more it can get a 10% discount on the cost of the book. Should PUC take the quantity discount? Assume the demand is constant

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