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Category > Accounting Posted 15 May 2017 My Price 7.00

Finding Q with Quantity Discounts at St. LeRoy Hospital

Finding Q with Quantity Discounts at St. LeRoy Hospital A suppler for St. LeRoy Hospital has introduced quantity discounts to encourage larger order quantities of a special catheter. The price schedule

Order Quantity

Price per unit

0 to 299

$60.00

300 to 499

$58.80

500 or More

$57.00

The hospital estimates that its annual demand for this item is 936 units. Its ordering cost is $45.00 per order, and its annual holding cost is 25 percent of the catheter"s unit price. What quantity of this catheter should the hospital order to minimize total costs? Suppose the price for quantities between 300 and 499 is relaxed to $58.00. Do the order Quantity change?

Answers

Alpha Geek
(8)
Status NEW Posted 15 May 2017 01:05 PM My Price 7.00

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file 1494854506-Answer.docx preview (235 words )
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