12. Suppose Stanley's Office Supply purchases 50,000 boxes of pens every year. Ordering costs are $57.8...

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12. Suppose Stanley's Office Supply purchases 50,000 boxes of pens every year. Ordering costs are $57.8 per order and carrying costs are $0.50 per box. The vendor now offers a quantity discount of $0.02 per box if the company buys pens in order sizes of 10,000 boxes. Determine the before-tax benefit or loss of accepting the quantity discount. (Assume the carrying cost remains at $0.50 per box whether or not the discount is taken. And a hint: C*P = carrying cost per box.) a. $89 loss b. $89 benefit c. $1,089 loss d. $1,089 benefit e. $0 (The change would not affect profits.) 12. Suppose Stanley's Office Supply purchases 50,000 boxes of pens every year. Ordering costs are $57.8 per order and carrying costs are $0.50 per box. The vendor now offers a quantity discount of $0.02 per box if the company buys pens in order sizes of 10,000 boxes. Determine the before-tax benefit or loss of accepting the quantity discount. (Assume the carrying cost remains at $0.50 per box whether or not the discount is taken. And a hint: C*P = carrying cost per box.) a. $89 loss b. $89 benefit c. $1,089 loss d. $1,089 benefit e. $0 (The change would not affect profits.)

Answer rating: 100% (QA)

Calculation of EOQ EOQ 2 annual demand Order cost C EOQ 2 50000 5780 050 EOQ 11560000 3400 boxes No... View the full answer