Explain a manufacturer of exercise equipment purchases

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Reference no: EM1368452

A manufacturer of exercise equipment purchases the pulley section of the equipment from a supplier who lists these prices: less than 1,000, $5 each; 1,000 to 3,999, $4.95 each; 4,000 to 5,999, $4.90 each; and 6,000 or more, $4.85 each. Ordering costs are $47, annual carrying costs per unit are 40 percent of purchase cost, and annual usage is 4,790 pulleys.

Reference no: EM1368452

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