A company's demand for a product is 15 units per month. Its supplier charges an ordering cost of $5 per order and $10 per unit with a 10% discount for orders of 15 units or higher. The company incurs a 25% annual holding cost. What is its annual total cost (which includes the purchasing cost, ordering cost, and holding cost) the firm incurs, assuming they operate optimally?
Without the discount the Annual Total... View the full answer