Question

A large hospital uses 816 cases of liquid cleanser annually. Ordering costs are $12, carrying costs are 20% of the price per case per year. A new price schedule is shown below.
In the boxes below, indicate how many cases the hospital should order to minimize total costs. Also indicate the price they should pay and how much will they spend annually on liquid cleanser.
Qty Price
1-49 $20
50-79 $18
80-99 $17
100+ $16



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  • CreatedAugust 26, 2013
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