Business, 06.04.2021 02:20 gracepiechowiak

The Big Cheese Pizza Parlor buys lots of pizza boxes. They normally pay $1.25 per box, when ordering from their supplier. Based on their annual forecast for pizza demand, their demand for boxes is estimated to be 5,000 units for the year. It costs $35 to place an order and their holding cost rate for boxes is 15% of the cost of a box per year. One day, the supplier representative tells the Big Cheese Pizza buyer that she can sell them the boxes for $1 each if they buy a minimum of 3000 at a time. Should they take the discount

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The Big Cheese Pizza Parlor buys lots of pizza boxes. They normally pay $1.25 per box, when ordering...

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