Question: Based on the information below, please answer the questions You run a retail store that sells computer games (Trexiod) You pay your supplier $20 per

Based on the information below, please answer the questions

You run a retail store that sells computer games (Trexiod)

You pay your supplier $20 per copy, regardless of how many copies you buy

Each day you sell 10 copies and the store is open 300 days per year; annual expected demand is 3,000 copies

It costs $50 each time an order is placed; inventory carrying cost is 15% of the item purchase cost annually

10 days lead time for your supplier to get the shipment to you, suppose your Trexoid video game supplier offers to sell the game to you for $19 per unit if you purchase 1,200 units or more each time you buy. Given this information, please calculate TAC at $20 and TAC at $19. (use TAC_QD = annual ordering + annual carrying cost + annual purchasing expenses) and explain your decisions (a) unit price and (b) order quantity.

a. unit price = $( ) (that is, what is your decision of the unit price between $20 and $19)

b. order quantity = ( ) copies (that is, how much you will order from this supplier? Round up your answer to the next whole number)

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