Question: A stonecutter uses about 1 9 , 5 0 0 pounds of stone each week. The stonecutter estimates their holding cost to be 3 9
A stonecutter uses about pounds of stone each week. The stonecutter estimates their holding cost to be
per year. A supplier has offered the stonecutter two options. Option is to purchase stone in lots of
pounds truckload The price per pound for option is $ per pound. Option is to have stone delivered by rail.
The cost per pound for option would be $ per pound. Deliveries by rail will include pounds of stone.
In either case, the supplier will charge the firm a fixed fee of $ per delivery.
What is the total annual week holding and ordering cost of option
Note: Round your answer to decimal places.
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