Garner is your sole supplier of GR-2. Formerly, you ordered from Garner 800 units monthly, to meet
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Garner is your sole supplier of GR-2. Formerly, you ordered from Garner 800 units monthly, to meet an annual need (demand) for 9600 units. Purchase cost was $3.00 per unit. Now, however, Garner is offering discounts of 7% on orders of 1500 or more, and 15% on orders of 3000 units or more. Orders are placed and filled at a cost of $32 per order. Inventory holding cost is estimated at 20% of purchase cost, per item, per year. Under the new discount plan, what is your best strategy?
a. Order 1012 units
b. Order 1098 units
c. Order 3000 units
d. Order 3825 units
e. None of the above
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Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
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