Purchases from a vendor sweatshirts emblazoned

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Reference no: EM131111005

The bookstore at State University purchases from a vendor sweatshirts emblazoned with the school name and logo. The vendor sells the sweatshirts to the store for $38 apiece. The cost to the bookstore for placing an order is $120, and the carrying cost is 25% of the average annual inventory value. The bookstore manager estimates that 1,700 sweatshirts will be sold during the year. The vendor has offered the bookstore the following volume discount schedule:

OrderSize	Discount%
1-299	0
300-499	2
500-799	4
800+	5

The bookstore manager wants to determine the bookstore's optimal order quantity, given the foregoing quantity discount information.

Reference no: EM131111005

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