Question: Bell Computers purchases integrated chips at S350 per chip. The holding cost is $37 per unit per year the ordering cost is $119 per order

Bell Computers purchases integrated chips at S350

Bell Computers purchases integrated chips at S350 per chip. The holding cost is $37 per unit per year the ordering cost is $119 per order and sales are steady at 395 per month The company's supplier, Rich Blue Chip Manufacturing, Inc, decides to offer price concessions in order to attract larger orders. The price structure is shown below Rich Blue Chip's Price Structure Quantity Purchased Price/Unit 1-99 units $350 100-199 units $325 200 or more units $300 William Beville's computer training school in Richmond, stocks workbooks with the following characteristics Demand D 20,000 units/year Ordering costs $27/order Holding cost H $4/unit/year a) The EOQ for the workbooks is 520 (round your response to the nearest whole number). b) What are the annual holding costs for the workbooks? S 1040 (round your response to the nearest whole number). c) What are the annual ordering costs? $ (round your response to the nearest whole number). |

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