solution

The buyer at Jackson Enterprises purchases brackets for a high production item. The annual demand is about 3500 units. The following price structure was offered to the buyer: Purchase size: less than 100 = $80, 100 up to 250 = $76., over 250 = 73.00.

The inventory carrying cost rate is 30% and each purchase order costs $100. Which of the following statements is true? The order size of 170 units is feasible at a price of $80 The order size of 178 units is feasible at a price of $73 The lowest total cost is using an order size of 175 at a price of $76. The lowest total cost is using an order size of 201 at a price of $73.