North manufacturing order

Reference no: EM13328173

North Manufacturing has a demand for 1,000 pumps each year. the cost of a pump is 50. It costs North Manufacturing 40 to place an order, and carrying cost is 25% of the unit cost. If pumps are ordered in quantities of 200, North Manufacturing can get a discount 3% on the cost of pumps. Should North Manufacturing order 200 pumps at a time and take the 3% discount?

Reference no: EM13328173

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