Business, 23.12.2020 03:10 alext549

g XYZ Retail Company has a demand for 1,000 calculators each year. The supplier charges XYZ a cost per calculator of $60. It costs XYZ $40 to place an order, and the carrying cost is 20% of the calculator unit cost. XYZ has two options when it comes to ordering calculators from its supplier. Option 1: It costs XYZ $60 per calculator, which provides no discount, but there is no limit as to how many calculators it can order. Option 2: If XYZ orders 200 calculators in bulk, it will receive a 3% discount on the cost of calculators from its supplier. Question: If XYZ does not take the discount (i. e., chooses Option 1) what will its total cost be to buy the inventory. (The TC equation includes TCH (or TCC), TCO, and PD.)

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