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Statistics: Tapedeck sales and sale unit analysis

The regular price of a tape deck component is $20. on orders of 75 units or more,the price is discounted to $18.50. on orders of 100 units or more, the discount price price is $15.75 . At persent.Sound Business,Inc., a manufacturer of stereo components,has an inventory carrying cost of $1 per unit per year, and its ordering cost is $10. Annual demand is 45 components. what should sound Business,Inc,do?

Solution Summary

The cost of bulk ordering for Sound Business, Inc is examined. There is a discounted price for ordering 100 or more tape decks, but a $1 per unit per year carrying cost. What the business should do is determined.