During year-end planning session, they are considering another packaging supplier. 2023 annual sales projection would equate...

 

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During year-end planning session, they are considering another packaging supplier. 2023 annual sales projection would equate to 478,100 jars for their gourmet ketchup product. Purchase quantity Unit Cost 1-9,999 0.65 Above 10,000 0.60 Above 25,000 0.57 Above 50,000 0.45 This packaging company charges order cost at $25 per transaction. The inventory holding cost estimated at 10% of unit cost. 1. What is the best order quantity for the jars for the ketchup 2. What is the total cost (inventory holding + ordering + cost of jars) 3. Why does ordering cost go down when they purchase more jars per transaction During year-end planning session, they are considering another packaging supplier. 2023 annual sales projection would equate to 478,100 jars for their gourmet ketchup product. Purchase quantity Unit Cost 1-9,999 0.65 Above 10,000 0.60 Above 25,000 0.57 Above 50,000 0.45 This packaging company charges order cost at $25 per transaction. The inventory holding cost estimated at 10% of unit cost. 1. What is the best order quantity for the jars for the ketchup 2. What is the total cost (inventory holding + ordering + cost of jars) 3. Why does ordering cost go down when they purchase more jars per transaction