The purchasing manager for Medco Research Laboratory orders letterhead forms and stationery from an office products...

 

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The purchasing manager for Medco Research Laboratory orders letterhead forms and stationery from an office products firm in boxes of 500 sheets. The company uses 5,000 boxes per year. The supplier sells the box to the research lab for $13 dollars per box. The annual holding cost factor is 35%, and ordering costs are $34. The following all units discount price schedule is provided by the office supply company: Order quantity (boxes) 200-999 Discount 0% 1.000-2.999 8% 5,000+ 3.000-4.999 15% 23% Question 6 (1 point) What is the lowest total cost if you order between 200 and 999 units? (Enter your response as the nearest whole number) The purchasing manager for Medco Research Laboratory orders letterhead forms and stationery from an office products firm in boxes of 500 sheets. The company uses 5,000 boxes per year. The supplier sells the box to the research lab for $13 dollars per box. The annual holding cost factor is 35%, and ordering costs are $34. The following all units discount price schedule is provided by the office supply company: Order quantity (boxes) 200-999 Discount 0% 1.000-2.999 8% 5,000+ 3.000-4.999 15% 23% Question 6 (1 point) What is the lowest total cost if you order between 200 and 999 units? (Enter your response as the nearest whole number)

Answer rating: 100% (QA)

SOLUTION If we order between 200 and 999 units the discount rate is 10 Lets calculate the optimal or... View the full answer