Xanadu General (XG) uses 11776 units of a surgical instrument annually. Each unit costs $400 and each order XG places co
Posted: Sun Jul 03, 2022 5:23 pm
Xanadu General (XG) uses 11776 unitsof a surgical instrument annually. Each unit costs$400 and each order XG places costs$184. The inventory carrying rateis 8% of purchase price per year. XG'ssupplier offers a 21% discount on thepurchase price if XG's order quantityis 200 units.What is the total cost of purchase, ordering, and holding withoutthe discount? What is the total cost of purchase, ordering, and holding with thediscount?