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MFK Co purchases $540,000 per year of Product P at a price of $3 a unit. Demand for Product P is assumed to be constant throughout the year. Now the supplier has offered a 2% discount for orders of Product P of 30,000 units. Each order costs MFK Co $150 to place and the holding cost is 24 cents per unit per year. What's the total cost for company if accept bulk purchase discount?

MFK Co purchases $540,000 per year of Product P at a price of $3 a unit. Demand for Product P is assumed to be constant throughout the year. Now the supplier has offered a 2% discount for orders of Product P of 30,000 units. Each order costs MFK Co $150 to place and the holding cost is 24 cents per unit per year. What's the total cost for company if accept bulk purchase discount?

发布时间:2025-07-22 06:41:52
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答案:533700 【分析】:Cost of materials after bulk purchase discount = 540,000 x 0·98 = $529,200 per year Annual demand 180,000 units per year MFK Co will need to increase its order size to 30,000 units to gain the bulk discount Revised number of orders = 180,000/30,000 = 6 orders per year Revised ordering cost = 6 x 150 = $900 per year Revised holding cost = 0·24 x (30,000/2) = $3,600 per year Revised total cost of inventory policy = 529,200 + 900 + 3,600 = $533,700 per year
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