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jgosset2 jgosset2
wrote...
Posts: 62
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7 years ago
A manufacturer of exercise equipment purchases the pulley section of the equipment from a supplier who lists these prices: less than 1,000, $5 each; 1,000 to 3,999, $4.95 each; 4,000 to 5,999, $4.90 each; and 6,000 or more, $4.85 each. Ordering costs are $50, annual carrying costs per unit are 40 percent of purchase cost, and annual usage is 4,900 pulleys.

Determine an order quantity that will minimize total cost. (Round "Q" values to the nearest whole number and all other calculations to 2 decimal places.)

Options(choose 1):
A. 4,000 units
B. 4,000 or 6,000 units
C. 1,500 units
D. 400 units
E. 495 or 1,000 units
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wrote...
Educator
7 years ago
Hi again, here's my answer
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wrote...
3 years ago Edited: 3 years ago, bio_man
Thanks
wrote...
6 months ago
Thx
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