Question: 3 . Ardmore Farm and Seed ( problem 1 . ) was recently approached by its supplier with a new quantity discount program. The supplier

3. Ardmore Farm and Seed (problem 1.) was recently approached by its supplier with a new quantity
discount program. The supplier offered the following quantity discounts.
Quantity Cost Per Unit
0-4,999 $40.00
5,000-9,99939.00
10,000-19,99937.00
20,000+35.00
Ardmore felt that these quantity discounts would give them a real competitive edge but realize that other
costs would be affected such as ordering costs and holding costs.
a. What quantity should Ardmore order based on the quantity discounts offered?

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