Question: Firm B ' s demand for a product is 1 0 units per month. Its supplier charges an ordering cost of $ 5 per order

Firm B
'
s demand for a product is
1
0
units per month. Its supplier charges an ordering cost of $
5
per order and $
1
0
per unit with a
1
0
%
discount for orders of
2
5
units or higher. Firm B incurs a
3
0
%
annual holding cost. How much does Firm B save each year
(
including purchasing, ordering, and holding costs
)
if it purchases enough units to get the discount?
Group of answer choices
$
2
.
2
5
$
6
.
0
0
$
1
2
0
.
0
0
$
1
2
2
.
2
5

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