Question: A store estimates their holding costs at 2 9 % and incurs a fixed cost of $ 6 7 . 0 0 for each order.

A store estimates their holding costs at 29% and incurs a fixed cost of $67.00 for each order. Demand for an item is 2,100 units per year. A supplier offers a price of $11.00 each for quantities of 400 or fewer and a price of $10.34 for quantities over 400 units.
How many units should the retailer order at one time?
What is the total annual cost at this order point?
Note: Round your answer to the nearest integer value.
\table[[1. Number of units],[2. Total annual cost]]
 A store estimates their holding costs at 29% and incurs a

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!