The Tiernan Gallery and Art Museum distributes to its visitors a printed guide to its collections. 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. The printer has offered the following discount schedule: Category Order Size Unit Cost 1 0-1499 $2.50 1500-2999 $2.20 3 3000 and over $1.80 Make a Quantity Discount table. How many brochures should be printed at a time?
The Tiernan Gallery and Art Museum distributes to its visitors a printed guide to its collections. 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. The printer has offered the following discount schedule: Category Order Size Unit Cost 1 0-1499 $2.50 1500-2999 $2.20 3 3000 and over $1.80 Make a Quantity Discount table. How many brochures should be printed at a time?
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:The Tiernan Gallery and Art Museum distributes to its visitors a printed guide to its collections. 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. The printer has offered the following discount
schedule:
Category
Order Size
Unit Cost
1
0-1499
$2.50
1500-2999
$2.20
3.
3000 and over
$1.80
Make a Quantity Discount table. How many brochures should be printed at a time?
Round off your answer to whole number.
Edit View
Insert Format Tools Table.
12pt v
Paragraph v
EOQ®= 1732.1 (raise to 3000)
EOQ² = 1566.7 (feasible, so no reason to compute EOQ)
TC(1566.7) = 689.35
TC (3000)= 720.00
So the gallery should order 1566.7 or 1567 brochures at a time.
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