Question: 2. (3 points) Compsmart Inc. wants to reduce a large stock of personal computers it is discontinuing. It has offered the University Bookstore at UNB

2. (3 points) Compsmart Inc. wants to reduce a large stock of personal computers it is discontinuing. It has offered the University Bookstore at UNB a quantity discount pricing schedule if the store will purchase the personal computers in volume, as follows Unit Price Quantity 1~79 $1,400 80 119 $1,100 120 and more $900 The annual carrying cost for the bookstore for a computer is $150, the ordering cost is $2,500, and annual demand for this particular model is estimated to be 300 units. The bookstore manager wants to determine whether it should take advantage of this discount or order the basic EOQ order size. What is his/her best choice and explain
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
