Recargo Inc builds high performance seats for sports cars with an integrated seat harness system. Part...

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Recargo Inc builds high performance seats for sports cars with an integrated seat harness system. Part of the assembly requires ISO 9001 compliant locking mechanisms for the harness which are supplied by a certified manufacturer. The annual demand for the mechanisms is 10,000 units. The cost to process an order is $75 and the annual inventory holding cost is 20% of item cost. What is the optimal order quantity, given the following price breaks for purchasing the item? What price should the Recargo pay per unit? What is the total annual cost at the optimal behavior? Quantity 1-9 10 - 999 1,000 - 4,999 5,000 or more Price $2.95 per unit $2.50 per unit $2.30 per unit $1.87a per unit Recargo Inc builds high performance seats for sports cars with an integrated seat harness system. Part of the assembly requires ISO 9001 compliant locking mechanisms for the harness which are supplied by a certified manufacturer. The annual demand for the mechanisms is 10,000 units. The cost to process an order is $75 and the annual inventory holding cost is 20% of item cost. What is the optimal order quantity, given the following price breaks for purchasing the item? What price should the Recargo pay per unit? What is the total annual cost at the optimal behavior? Quantity 1-9 10 - 999 1,000 - 4,999 5,000 or more Price $2.95 per unit $2.50 per unit $2.30 per unit $1.87a per unit