What is total annual cost associated with order quantity

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Reference no: EM131133493

The Toledo Mudhens, a minor league baseball team, breaks an average of seven bats per week during a 38 week season. The team purchases it bats from a national supplier. The order cost is $185 and the annual holding cost is 24 percent of the purchase price.

Assume the bat manufacturer offers the Mudhens the following price schedule

Order Quantity Price per Unit

1 – 49 $25.00

50 - 143 $24.00

144 or more $23.50

How many bats should the team order if the discount applies to all units?

What is the total annual cost associated with the best order quantity?

Reference no: EM131133493

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