Question #56225

Assume that the following quantity discount schedule is appropriate

Order size Discount (%) Unit cost (sh)

0 to 49 0 30

50 to 99 5 28.5

100 or more 10 27

If annual demand is 120 units, ordering costs are sh 20 per order and the annual holding cost rate is 25%, what order quantity would you recommend

Order size Discount (%) Unit cost (sh)

0 to 49 0 30

50 to 99 5 28.5

100 or more 10 27

If annual demand is 120 units, ordering costs are sh 20 per order and the annual holding cost rate is 25%, what order quantity would you recommend

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