Should kramer distributors take the quantity discount

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Reference no: EM133357009

Kramer Distributors has an annual demand of 4,000 units for its handheld security wands. The average cost of the handheld security wand is $150. The carrying cost is 20% of the unit cost of the security wandOrdering costs are $40 per order. If the company orders in quantities of 500 or more, it can get a 10% discount on the unit cost of the security wand. Should Kramer Distributors take the quantity discount?

Reference no: EM133357009

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