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Should dorsey take the quantity discount

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Reference no: EM131638138

Question: Dorsey Distributors has an annual demand for a metal detector of 1,400. The cost of a typical detector to Dorsey is $400. Carrying cost is estimated to be 20% of the unit cost, and the ordering costis $25 per order. If Dorsey orders in quantities of 300 or more, it can get a 5% discount on the cost of the detectors. Should Dorsey take the quantity discount?

Reference no: EM131638138

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