## (Solution Download) A manufacturer of exercise equipment purchases the pulley section of the equipment from a supplier w

 A manufacturer of exercise equipment purchases the pulley section of the equipment from a supplier who lists these prices: less than 1,000, \$5 each; 1,000 to 3,999, \$4.95 each; 4,000 to 5,999, \$4.90 each; and 6,000 or more, \$4.85 each. Ordering costs are \$48, annual carrying costs per unit are 40 percent of purchase cost, and annual usage is 4,920 pulleys.

Determine an order quantity that will minimize total cost.

(Round "Q" values to the nearest whole number and all other

calculations to 2 decimal places.)

 486 1000 4000 6000 5000

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This question was answered on: Dec 08, 2020

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