What is the optimal number of discs to produce at a time

Assignment Help Financial Management

Reference no: EM131021950

Lindsay hawkes sells discs that contain 25 software packages that perform a variety of financial functions typically used by business students. Depending on th quantity ordered, Lindsay offers the following price discounts order quantity PRICE

1 to 600 $10

601 to 1100 $9.92

1101 to 1550 $9.86

1551 and up $9.80

The annual demand is 3000 units on average. Lyndsay's setuP cost to produce the discs is $350. She estimates holding costs to be 10% of the price, or about $1 per unit per year. What is the optimal number of discs to produce at a time?

PLEASE PROVIDE HOW TO SOLVE THE PROBLEM

Reference no: EM131021950

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