Question: In the Sam's bookstore problem the quantity discount structure is such that all of the units ordered have the same unit cost. For example, if

In the Sam's bookstore problem the quantity discount structure is such that all of the units ordered have the same unit cost. For example, if the order quantity is 2500, then each unit costs $22.25. Sometimes the quantity discount structure is such that the unit cost for the first so many units is a slightly lower value, and so on. Modify the model so that the Sm's pays $24 for units 1 to 1500, $23 for units 1501 to 2500, and $22 for units 2501 and above. For example, the total cost for an order quantity of 2750 is 1500(24) + 1000(23) + 250 (22). (HINT: USE IF FUNCTIONS NOT VLOOKUP).

Attached is what needs to be filled out. Please show all formulas in excel and explain all steps. Thank you! In the Sam's bookstore problem the quantity

Ordering decision with quantity discounts Pastes Unit cost - see table to right Regular price Leftover price $30 $101 Quantity discount structure Break point Unit cost 1500 $24.00 2500 $23.00 above $22.00 Decision variable Order quantity 2500 Uncertain quantity Demand 1 - 2000 -Profit model -Units sold at regular price Units sold at leftover price Revenue Cost Profit

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