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A firm buys a product using the price schedule given in the table:

The company estimate holding costs at 10% of the purchase price per year and ordering costs at $40 per order. The firm's annual demand is 460 units to optimize costs:

1) Determine how often the firm should order.

2) Determine the size of each order and,

3) At what price should the firm order.

271_price schedule.jpg

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M91820

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