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What is the optimal order quantity for the first price range? (Please round your response to the nearest whole number)

What is the optimal order quantity for the first price range? (Please round your response to the nearest whole number)

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
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Wang Distributors has an annual demand for an airport metal detector of 1,420 units. The cost of a typical detector to Wang is $400. Carrying cost is estimated to be 20% of the unit cost, and the ordering cost is $27 per order. If Ping Wang, the owner, orders in quantities of 100 or more, he can get a 10% discount on the cost of the detectors. So, the pricing structure is as follows: Price Range Quantity Purchased 1 1-99 units 2 100 or more units Price/Unit $400 $360 What is the optimal order quantity for the first price range? (Please round your response to the nearest whole number) O A 100 O B. 165 O C. 1 O D. 31
Transcribed Image Text:Wang Distributors has an annual demand for an airport metal detector of 1,420 units. The cost of a typical detector to Wang is $400. Carrying cost is estimated to be 20% of the unit cost, and the ordering cost is $27 per order. If Ping Wang, the owner, orders in quantities of 100 or more, he can get a 10% discount on the cost of the detectors. So, the pricing structure is as follows: Price Range Quantity Purchased 1 1-99 units 2 100 or more units Price/Unit $400 $360 What is the optimal order quantity for the first price range? (Please round your response to the nearest whole number) O A 100 O B. 165 O C. 1 O D. 31
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