question archive A toy store has a yearly demand for a thinking game of 900 units (or 75 units per months)
A toy store has a yearly demand for a thinking game of 900 units (or 75 units per months)
Subject:ManagementPrice: Bought3
A toy store has a yearly demand for a thinking game of 900 units (or
75 units per months). The game costs $50 per unit, the shipping cost to the store is $450 per shipment, and the holding cost is $4 per item per year.
The manufacturer of the game is willing to give a $1 discount per unit if the toy store purchases 900 units at a time. Should the toy company agree to the deal?
-No
-Yes
-There is not enough data to answer this question
-No, but if the manufacturer gives a $2 discount, then the answer becomes yes
