Business, 27.08.2021 19:40 expresslmnop

The bookstore at State University purchases from a vendor sweatshirts emblazoned with school name and logo. The vendor sells the sweatshirts to the store for $38 apiece. The cost to the bookstore for placing an order is $120, and the carrying cost is 25% of the average annual inventory value. The bookstore manager estimates that 2,000 sweatshirts will be sold during the year. The vendor has offered the bookstore the following volume discount schedule: Order size Discount (96) 1- 299 300 499 500 799 800 (a) Specify the prices and carrying costs of the sweatshirts in different order quantities. Price 38 Order size Carrying Cost 1 299 300 499 500~799 800~
(b) Determine the optimal order quantity without discount
(c) The total annual costs with the order quantity in (a)
(d) The total annual costs with the order quantity of 300
(e) The total annual costs with the order quantity of 500
(f) The total annual costs with the order quantity of 800
(g) Based on the results of (b - c), what is the optimal order quantity given the discount schedule?

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