Question: The mythical Owen Distributors has an annual demand of 2,000 units for its handheld security wands. The average cost of the handheld security wand is

The mythical Owen Distributors has an annual demand of 2,000 units for its handheld security wands. The average cost of the handheld security wand is US$140. Carrying cost is 18% of the unit cost of the security wand. Ordering costs are US$30 per order. If the company orders in quantities of 500 or more, it can get a 6% discount on unit cost of the security wand. Should Owen Distributors take the quantity discount?

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