A small computer firm orders monitors for sale the annual

Reference no: EM13473457

A small computer firm orders monitors for sale. The annual demand is 1300 per year. The holding cost is 10 percent of the value of the monitors on hand. Each time they order it cost the company 150 dollars. Using the price break table below please determine what the optimal number to order would be for this company.

Annual Demand 1300

order cost 150

percent holding cost 0.1

price break discount table

number price

0 to 100 $100.00

101-200 $99.75

201-250 $99.50

251-300 $99.35

301-350 $99.25

351 and up $99.20

Reference no: EM13473457

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