Question: Bulk Purchase Discounts for Electronics SuperTech Electronics (SE) is a prominent e-commerce platform that specializes in selling high-quality headphones. Wireless earbuds make up a significant

Bulk Purchase Discounts for Electronics

SuperTech Electronics (SE) is a prominent e-commerce platform that specializes in selling high-quality headphones. Wireless earbuds make up a significant portion of their sales. The monthly demand for these earbuds is 8,000 units. Every time an order for earbuds is placed with the manufacturer, SE incurs an ordering cost of $150. The holding cost is set at 15 percent annually. The manufacturer offers the following bulk purchase pricing for the earbuds:

Order Quantity Unit Price
0-3,499 $50.00
3,500-6,999 $48.00
7,000 or more $47.00

Evaluate the number of earbuds the SE manager should order in each lot. Please show all steps and calculations to receive full points.

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