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The Hodson Gallery and Art Museum distributes a printed guide for its visitors.  There are about 18000 visitors per year.  Holding costs for the brochures are 20% and it costs $30 to place an order with the printer.    A. Assuming the cost for each guide is $2.50, how many should be printed at a time?   B. Now assume the printer has offered the following discount schedule:                         Category Order Size Unit Cost 1 0 - 1499 $2.50 2 1500 - 2999 $2.20 3 3000 and over $1.80   Now how many brochures should be printed at a time?

The Hodson Gallery and Art Museum distributes a printed guide for its visitors.  There are about 18000 visitors per year.  Holding costs for the brochures are 20% and it costs $30 to place an order with the printer.    A. Assuming the cost for each guide is $2.50, how many should be printed at a time?   B. Now assume the printer has offered the following discount schedule:                         Category Order Size Unit Cost 1 0 - 1499 $2.50 2 1500 - 2999 $2.20 3 3000 and over $1.80   Now how many brochures should be printed at a time?

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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  1. The Hodson Gallery and Art Museum distributes a printed guide for its visitors.  There are about 18000 visitors per year.  Holding costs for the brochures are 20% and it costs $30 to place an order with the printer. 

     

    A. Assuming the cost for each guide is $2.50, how many should be printed at a time?

     

    B. Now assume the printer has offered the following discount schedule:
                           


    Category

    Order Size

    Unit Cost

    1

    0 - 1499

    $2.50

    2

    1500 - 2999

    $2.20

    3

    3000 and over

    $1.80

     

    Now how many brochures should be printed at a time?

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