Raw material is available to company at different prices

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Reference no: EM131033571

A particular raw material is available to a company at three different prices, depending on the size of the order:

Less than 100 pounds $20 per pound

100 pounds to 1,000 pounds $19 per pound

More than 1,000 pounds $18 per pound

The cost to place an order is $40. Annual demand is 3,000 units. Holding (or carrying) cost is 25 percent of the material price. Calculate the total cost for the 100 pounds to 1000 pounds pricing options.

Reference no: EM131033571

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