R. c. barker makes purchasing decisions for his company. one product that he buys costs $50 per unit when the order quantity is less than 500. when the quantity ordered is 500 or more, the price per unit drops to $48. the ordering cost is $30 per order and the annual demand is 7,500 units. the holding cost is 10 percent of the purchase cost. if r. c. orders 500 units each time he places an order, what would the total annual holding cost be:

You are chairman of the board of a successful technology firm. there is a nominal federal corporate tax rate of 35 percent, yet the effective tax rate of the typical corporation is about 12.6%. your firm has been clever with use of transfer pricing and keeping money abroad and has barely paid any taxes over the last 5 years; during this same time period, profits were $28 billion. one member of the board feels that it is un-american to use various accounting strategies in order to avoid paying taxes. others feel that these are legal loopholes and corporations have a fiduciary responsibility to minimize taxes. one board member quoted what the ceo of exxon once said: “i’m not a u.s. company and i don’t make decisions based on what’s good for the u.s.” what are the alternatives? what are your recommendations? why do you recommend this course of action?