Given Unit price: $10.00 Annual Demand: 12,000 units Setup Cost: $75 Anuual Hold Cost: $5.00 / Unit Assume that the firm is currently purchasing 600 units at each order cycle, with a total annual cost (including parts) of $123,000. A candidate suppler proposed a unit discount of 17% if they were willing to double their order quanity to 1200 units. Determine the annual savings in dollars if purchasing agreed to this proposal. Enter your result rounded to the nearest penny if applicable without the $ symbol. Note: If there is no savings, and the decision costs more, then the result is entered as a negative number!

Answer rating: 100% (QA)

Offer a unit discount of 17 Unit price 1000 17 of 100... View the full answer