Question: PROBLEM THREE (25 points) Given: Whiney Pump Corp. has a demand for 250 pumps each quarter. The cost of a pump is 50$, and it

PROBLEM THREE (25 points) Given: Whiney Pump

PROBLEM THREE (25 points) Given: Whiney Pump Corp. has a demand for 250 pumps each quarter. The cost of a pump is 50$, and it costs the company 40$ to place an order for the pumps. The holding cost is 25% of the unit cost. Whiney Pump Corp. are offered a 4% discount if the order quantity is no less than 200 pumps each time they place an order. Required: Is it better for the Whiney Pump Corp. to accept the discount. Verify your choice by appropriate calculations

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