Annual demand for boxes of chocolate heaven candies

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Reference no: EM131121453

Suzy’s Candy Distributors has an annual demand for its boxes of “Chocolate Heaven Candies” of 280,000 units, an ordering cost of $75 per order, and an annual holding cost percentage of 18%. The current purchase price for each box is $28, but the supplier has notified Suzy that starting next week, the purchase price will rise to $40. Suzy’s inventory of boxes is about to be depleted. How many boxes should Suzy purchase?

Reference no: EM131121453

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