Question: The following data correspond to a proposal for incremental discounts. The price of component AB is $ 0.60 each in quantities of 500 or less.

The following data correspond to a proposal for incremental discounts. The price of component AB is $ 0.60 each in quantities of 500 or less. For quantities between 500 and 1000, they cost $ 0.58 and for quantities of more than 1000 $ 0.56 each.

If the cost to place an order is $ 20, the annual demand is 800 units, and the cost to maintain inventory is 20%, it determines the quantity to buy.

Q ( Cantidad)

Discount %

Costo Unitario

0 - 999

0 %

5

1 000 - 1 999

2 %

2 000 o ms

3 %

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!