Ex. 11.14 check
Marginal Unit Quantity Discount (Exercise 11-14)
Fixed cost per order = 400.00$
Monthly demand = 20,000 sq. feet
Holding percentage = 20% %
Pricing:
Min Qty Max Qty Price per sq. ft.
0 30,000 5.00$
30,000 100,000 4.90$
Range V QAdjust to Q Total Cost
0 0 13,856 13,856 1,213,856$
1 150,000 40,808 40,808 1,216,292$
Without Quantity Discount
Price per sq ft Q Total Cost
5.00$ 13,856 1,206,997$
ex. 11.14
Marginal Unit Quantity Discount (Exercise 11-14)
Fixed cost per order = 400$ per order
Monthly demand = 20,000 sq. feet
Holding percentage = 20%
Pricing: Quantity Price per sq. ft.
$1,200,000.00
$1,220,000.00
$1,240,000.00
$1,260,000.00
$1,280,000.00
$1,300,000.00
$1,320,000.00
Annual Cost
Total Cost With Varying Order Size