Western University Uses $136,000 of a Particular Toner Cartridge for Laser

question 40

Essay

Western University uses $136,000 of a particular toner cartridge for laser printers in the student computer labs each year. The purchasing director of the university estimates the ordering cost at $51 and thinks that the university can hold this type of inventory at an annual storage cost of 20% of the purchase price of $4 each. How many months' supply should the purchasing director order at one time to minimize the total annual cost of purchasing and carrying?

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Definitions:

Ratification Effective

denotes the point at which an agreement or decision, previously provisional or unauthorized, is formally approved and becomes legally binding.

Material Facts

Important facts that influence a decision-maker's actions in a contract, negotiation, or legal case.

Third Restatement

Part of a series of restatements of the law, which are scholarly works that aim to distill, clarify, and occasionally modernize the law by offering comprehensive interpretations and analyses.

Apparent Authority

A form of authority that a third party reasonably believes an agent has, based on the actions or statements of the principal.