Dorsey take the quantity discount

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Dorsey Distributors has an annual demand for a metal detector of 1,400. The cost of a typical detector to Dorsey is $400. Carrying cost is estimated to be 20% of the unit cost, and the ordering cost is $25 per order. If Dorsey orders in quantities of 300 or more, it can get a 5% discount on the cost of the detectors.Should Dorsey take the quantity discount? Assume the demand is constant.

Reference no: EM131099748

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