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quantity_discounts_problem

quantity_discounts_problem - Order Quantity Price per Unit...

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MGSC 871 QUANTITY DISCOUNTS EXAMPLE A firm estimates annual demand for an item at 1000 units. Setup costs are approximately $200 per production run. Holding costs are estimated to be 25 percent of the unit price per item per year. The price schedule the seller offers for this item is:
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Unformatted text preview: Order Quantity Price per Unit 0 to 100 $ 100.00 101 to 300 $ 90.00 301 or more $ 85.00 What should the order quantity of this item be?...
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