Should chandler manufacturing order 200 pumps

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Reference no: EM132075552

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

Reference no: EM132075552

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