Question

Sarah's Computer City sells 5,000 boxes of CD-RW compact disc per year. She determined that she pays $50 to process an order for discs. Her purchase price is $6 for each box od discs and she has determined that storage costs for one year are 25 percent of the purchase price. Sarah's vendor said that is she purchased 1,000 boxes at a time, she would receive a 10 percent discount. What is her total cost if she orders her Economic Order Quantity without the discount if the formula for total cost is TC=DP+QIP/2+DS/Q?

Answer 1

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