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(Solved): A store estimates their holding costs at 30% and incurs a fixed cost of $66.00 for each order. Deman ...



A store estimates their holding costs at 30% and incurs a fixed cost of $66.00 for each order. Demand for an item is 2,075 units per year. A supplier offers a price of $12.00 each for quantities of 425 or fewer and a price of $11.28 for quantities over 425 units. How many units should the retailer order at one time? What is the total annual cost at this order point?



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