Should we take advantage of the quantity discount

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Reference no: EM131797193

We need 1,000 electric drills per year. The ordering cost for these is $100 per order and the carrying cost is assumed to be 40% of the per unit cost. In orders of less than 130, drills cost $70; for orders of 130 or more, the cost drops to $60 per unit. Should we take advantage of the quantity discount?

Reference no: EM131797193

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