What are the annual holding cost and annual setup cost

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Reference no: EM131774102

The regular price of a DVD component is S20. On order of 75 units or more, the price is discounted to $18.50. On orders of 100 units or more, the discount price is $15.75. At present, Sound Business, Inc., a manufacturer of high-fidelity components, has an inventory carrying cost of 5% of unit price per nit per year, and its ordering cost is $10. Annual demand is 45 components. A. How much should Sound Business, Inc., order under different prices? B. What are the annual holding cost, annual setup cost, annual product cost and the total cost under each price?

Reference no: EM131774102

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