Ex. 11.16 check
Marginal Unit Quantity Discount (Exercise 11-16)
Fixed cost per order = 500.00$
Monthly demand = 5,000
Holding percentage = 25%
Pricing:
Min Qty Max Qty Price per phone
0 10,000 200.00$
10,000 20,000 195.00$
20,000 190.00$
Range V Q Adjust to Q Total Cost
0 0 1,095 1,095 12,054,772$
1 2,000,000 11,149 11,149 12,249,780$
2 3,950,000 19,499 20,000 12,345,250$
Without Quantity Discount
Price per Phone Q Total Cost
200.00$ 1,095 12,054,772$
ex. 11.16
Marginal Unit Quantity Discount (Exercise 11-16)
Fixed cost per order = 500$ per order
Monthly demand = 5,000 phones
Holding percentage = 25%
Pricing: Quantity Price per phone
ex. 11.16
35000 194.286$ 850,000$ 857$ 11,657,143$ 12,508,000$
36000 194.167$ 873,750$ 833$ 11,650,000$ 12,524,583$
37000 194.054$ 897,500$ 811$ 11,643,243$ 12,541,554$
38000 193.947$ 921,250$ 789$ 11,636,842$ 12,558,882$
39000 193.846$ 945,000$ 769$ 11,630,769$ 12,576,538$
40000 193.750$ 968,750$ 750$ 11,625,000$ 12,594,500$
41000 193.659$ 992,500$ 732$ 11,619,512$ 12,612,744$
42000 193.571$ 1,016,250$ 714$ 11,614,286$ 12,631,250$
43000 193.488$ 1,040,000$ 698$ 11,609,302$ 12,650,000$
44000 193.409$ 1,063,750$ 682$ 11,604,545$ 12,668,977$
45000 193.333$ 1,087,500$ 667$ 11,600,000$ 12,688,167$
46000 193.261$ 1,111,250$ 652$ 11,595,652$ 12,707,554$
47000 193.191$ 1,135,000$ 638$ 11,591,489$ 12,727,128$
48000 193.125$ 1,158,750$ 625$ 11,587,500$ 12,746,875$
49000 193.061$ 1,182,500$ 612$ 11,583,673$ 12,766,786$
50000 193.000$ 1,206,250$ 600$ 11,580,000$ 12,786,850$
51000 192.941$ 1,230,000$ 588$ 11,576,471$ 12,807,059$
52000 192.885$ 1,253,750$ 577$ 11,573,077$ 12,827,404$
53000 192.830$ 1,277,500$ 566$ 11,569,811$ 12,847,877$
54000 192.778$ 1,301,250$ 556$ 11,566,667$ 12,868,472$
55000 192.727$ 1,325,000$ 545$ 11,563,636$ 12,889,182$
56000 192.679$ 1,348,750$ 536$ 11,560,714$ 12,910,000$
57000 192.632$ 1,372,500$ 526$ 11,557,895$ 12,930,921$
58000 192.586$ 1,396,250$ 517$ 11,555,172$ 12,951,940$
59000 192.542$ 1,420,000$ 508$ 11,552,542$ 12,973,051$
60000 192.500$ 1,443,750$ 500$ 11,550,000$ 12,994,250$
61000 192.459$ 1,467,500$ 492$ 11,547,541$ 13,015,533$
$12,000,000
$12,200,000
$12,400,000
$12,600,000
$12,800,000
$13,000,000
$13,200,000
Annual Cost
Total Cost with Varying Order Size