A manufacturer of fireproof safes sells them for 2000 each, Ask an Expert

Management Studies

A manufacturer of fireproof safes sells them for $2,000 each for orders up to 100 safes. They offer a 15% marginal unit quantity discount for orders of more than 100 safes. The manufacture uses their own truck to deliver them and will unload the truck for customers in order to avoid damage. Due to the weight of the safes and delivery labor, each order carries a $2,000 order charge regardless of the quantity ordered. A truck can carry up to 200 safes. Safes-R-Us believes they will only place one order this year and determined they can fit 150 safes in their warehouse and will order that quantity. What will be the total cost of this order?

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M92599915

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