Question: I need help with this question. Bill needs to purchase milk for his ice cream production. His supplier charges $40 per delivery (no matter how
I need help with this question.
Bill needs to purchase milk for his ice cream production. His supplier charges $40 per delivery (no matter how much is delivered) and $1.25 per gallon. Bills annual holding cost per unit is 30 percent of the price per gallon. Bill uses 200 gallons of milk per week. Suppose Bill orders 3000 gallons each time he places an order with the supplier. What is the sum of the ordering and holding costs per gallon? (Round your answer to 3 decimal places.)
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