Acme Distributors has an annual demand for an airport metal detector of 1,575 units. The unit cost of a typical detector to Acme is $333.00. Holding cost is estimated to be 15.5% of the unit cost, and the ordering cost is $25 per order. a. What is the optimal order quantity (EOQ), given the current ordering policy (without price breaks)? [ Select] b. What is the total cost of the current ordering policy (including the unit cost? [Select] If Karen Powell, the owner, orders in quantities of 360 or more she can get a 5% discount on the cost of the detectors. c. What price should Acme pay per unit, considering the discount? $ [Select] d. What is the total cost at the discounted behavior? $ [Select] e. What option should Karen Powell choose? [ Select]

Acme Distributors has an annual demand for an airport metal detector of 1,575 units. The unit cost of a typical detector to Acme is $333.00. Holding cost is estimated to be 15.5% of the unit cost, and the ordering cost is $25 per order. a. What is the optimal order quantity (EOQ), given the current ordering policy (without price breaks)? [ Select] b. What is the total cost of the current ordering policy (including the unit cost? [Select] If Karen Powell, the owner, orders in quantities of 360 or more she can get a 5% discount on the cost of the detectors. c. What price should Acme pay per unit, considering the discount? $ [Select] d. What is the total cost at the discounted behavior? $ [Select] e. What option should Karen Powell choose? [ Select]

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter8: Cost Analysis

Section: Chapter Questions

Problem 5E

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Please show COMPLETE SOLUTION
How would I find D and E? (Not graded, read file name)