Quantity Discount: Consider a quantity discount problem where the yearly demand for the product is 1.480 units, the ordering cost is $48, the holding cost is 42% of the purchase price, and the price depends on the quantity as fol Quantity Ordered Purchase Price $ O to 199 units $72 each 200 to 4,999 units $50 each 5,000 or more $33 each Assume the adjusted EOQ is 1,394 for the quantity range, 200 to 4,999 units, calculate the annual total cost for ordering this quantity including the cost of purchasing the product. (Round to two decimal places)
Quantity Discount: Consider a quantity discount problem where the yearly demand for the product is 1.480 units, the ordering cost is $48, the holding cost is 42% of the purchase price, and the price depends on the quantity as fol Quantity Ordered Purchase Price $ O to 199 units $72 each 200 to 4,999 units $50 each 5,000 or more $33 each Assume the adjusted EOQ is 1,394 for the quantity range, 200 to 4,999 units, calculate the annual total cost for ordering this quantity including the cost of purchasing the product. (Round to two decimal places)
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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Transcribed Image Text:Quantity Discount:
Consider a quantity discount problem where the yearly demand for the product is 1.480 units, the ordering cost is $48, the holding cost is 42% of the purchase price, and the price depends on the quantity as follo
Quantity Ordered
Purchase Price $
0 to 199 units
$72 each
200 to 4,999 units
$50 each
5,000 or more
$33 each
Assume the adjusted EOQ is 1,394 for the quantity range, 200 to 4.999 units calculate the annual total cost for ordering this quantity including the cost of purchasing the product. (Round to two decimal places)
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