Question: Given that the ordering cost = $45, annual demand is 10,000 units, unit price per item = $10 and the annual inventory holding cost =

Given that the ordering cost = $45, annual demand is 10,000 units, unit price per item = $10 and the annual inventory holding cost = 18% of the items unit price

Discount Number Quantity Discount
1 1- 4999 X%
2 5 or more Y%

a)What is the unit price the supplier would charge you if 6002 units are purchased?

b) If the annual product cost for Discount number 1 is $ 94,000, what is X?

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