1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
raketka [301]
3 years ago
6

Wang Distributors has an annual demand for an airport metal detector of 1,400 units. The cost of a typical detector to Wang is $

400. Carrying cost is estimated to be 20% of the unit costs, and the ordering is $25 per order. If Ping Wang, the owner, orders in quantities of 300 or more, he can get a 5% discount on the cost of the detectors. Should Wang take the quantity discount?
Business
2 answers:
ololo11 [35]3 years ago
8 0
Thank you for posting your question here. I hope the answer helps. 
If Ping Wang, the owner, orders in quantities of 300 or more, he can get a 5% discount on the cost of the detectors. I think yes, Wang <span>should take the quantity discount.</span>
Hoochie [10]3 years ago
5 0

Answer:

Wang should take the quantity discount

Explanation:

Total minimum cost for both cases i.e. with and without discount is evaluated.

1. Without the discount

Demand - 1,400 units

Ordering cost - $25 per order

Cost of detector- $400

Carrying cost - 20%

Applying EOQ formula: √ (2*1,400*25)/(400*20%) = 29.580

Total cost = (400*1400) + (1400*25*2/29.580) = 562,366

2. With discount

Demand - 1,400 units

Ordering cost - $25 per order

Cost of detector i.e. 400 x 20%- $380

Carrying cost - 20%

Applying EOQ formula: √ (2*1,400*25)/(380*20%) = 30.3488

Applying variables to obtain total cost as in 1 above = 543,516.67

Therefore, since total cost is lower after the discount, Wang should take the quantity discount.

You might be interested in
What are five foundations of economics?
koban [17]

Answer:

incentives, trade-offs, opportunity cost, marginal thinking, and the principle that trade creates value.

Explanation:

8 0
3 years ago
What does the cio in a company do
Mars2501 [29]
<span>Manage the technological areas of the company</span>
8 0
3 years ago
Which of the following included the time period known as the Grand Period of Hotels?
Pepsi [2]

Answer:

the eighteenth century

8 0
3 years ago
Inventory records for Marvin Company revealed the following:
motikmotik
"8.60" (and any subsequent words) was ignored because we limit queries to 32 words.
8 0
3 years ago
Arguing that globalization is ultimately driven by joint gains from mutually beneficial trade is an argument from which perspect
Fofino [41]

Arguing that globalization is ultimately driven by joint gains from mutually beneficial trade is an argument from <u>the liberal perspective.</u>

<h3><u>What does the liberal viewpoint entail?</u></h3>

Liberal beliefs regarding the nature and purpose of law are centered on defending individual freedom. Liberals, following John Stuart Mill, argue against enforcing morality on the grounds that the use of coercion or control is not justified by society's conception of what is ethically appropriate. According to the liberal perspective, acts that damage or wrong people but to which they consent—often referred to as victimless crimes—are not properly criminalized. Thus, for a liberal, the border between the sex that ought to be criminalized and sex that shouldn't is the line between uninvited sex and sex that ought to be allowed.

Learn more about the liberal perspective with the help of the given link:

brainly.com/question/14581558

#SPJ4

7 0
2 years ago
Other questions:
  • Rob, Bill, and Steve form Big Company. Rob performs $45,000 of services for his 45 shares of the company. Bill transferred prope
    9·1 answer
  • A small business owner determines that her revenue during the next year should be approximately normally distributed with a mean
    11·1 answer
  • Price floors usually result in ___________________.
    8·1 answer
  • An oligopoly market structure is distinguished by several characteristics, one of which is mutual interdependence. What are some
    11·1 answer
  • On February 22, Brett Corporation acquired 250 shares of its $3 par value common stock for $26 each. On March 15, the company re
    5·1 answer
  • Suppose you put $800 per month into a Roth IRA, that pays 8% APR (compounded monthly). Assume you have nothing saved today, calc
    14·2 answers
  • Munoz Sporting Equipment manufactures baseball bats and tennis rackets. Department B produces the baseball bats, and Department
    9·1 answer
  • Armen has been sent to build a factory in a small village. When he arrives, Armen finds that the employees he will be managing s
    5·1 answer
  • Risk vs reward sim
    13·1 answer
  • Interest is capitalized when incurred in connection with the construction of plant assets because_______.
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!