YZ industries comes to town and is trying to win your business. They say that they can give you some volume discounts. Specifically, they say if you order 4000 or more at a time, they'll sell you the bags at $9.75 per bag.If you order more than 5,000 bags at a time, they'll sell it to you for $9.50 a bag, and if you order 10,000 or more at a time they'll sell you their bags at $9 a bag. What quantity should you order at a time? YZ industries charge the same order cost as KB industries. What is the most money can you save by firing KB industries and ordering from YZ industries?
YZ industries comes to town and is trying to win your business. They say that they can give you some volume discounts. Specifically, they say if you order 4000 or more at a time, they'll sell you the bags at $9.75 per bag.If you order more than 5,000 bags at a time, they'll sell it to you for $9.50 a bag, and if you order 10,000 or more at a time they'll sell you their bags at $9 a bag. What quantity should you order at a time? YZ industries charge the same order cost as KB industries. What is the most money can you save by firing KB industries and ordering from YZ industries?
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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YZ industries comes to town and is trying to win your business. They say that they can give you some volume discounts. Specifically, they say if you order 4000 or more at a time, they'll sell you the bags at $9.75 per bag.If you order more than 5,000 bags at a time, they'll sell it to you for $9.50 a bag, and if you order 10,000 or more at a time they'll sell you their bags at $9 a bag. What quantity should you order at a time? YZ industries charge the same order cost as KB industries.
What is the most money can you save by firing KB industries and ordering from YZ industries?
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