- Meena Distributors Has An Annual Demand For An Airport Metal Detector Of 1 370 Units The Cost Of A Typical Detector To 1 (39.35 KiB) Viewed 26 times
for the second drop down its either should or should not
Meena Distributors has an annual demand for an airport metal detector of 1,370 units. The cost of a typical detector to Meena is $400. Carrying cost is estimated to be 18% of the unit cost, and the ordering cost is $26 per order. If Purushottama Meena, the owner, orders in quantities of 300 or more, he can get a 6% discount on the cost of the detectors. Should Meena take the quantity discount? What is the EOQ without the discount? EOQ = units (round your response to one decimal place), Since the total cost with the discount is the total cost without the discount, Meena order 300 units at a time in order to qualify for the discount.