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Inventory costs for prom dresses

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Reference no: EM132213266

The following table shows inventory costs for prom dresses. The vendor is offering quantity discounts to Fancy Dancer, Inc. During the year, the business will purchase 8,500 prom dresses.

Discount Code Unit Cost Order Quantity Annual Carrying Cost Annual Ordering Cost

A $95 1,000 $1,000 $2,500

B $94 1,500 $1,500 $1,700

C $93 2,500 $5,000 $1,800

Which option provides the lowest overall inventory costs?

Reference no: EM132213266

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