A Pencil Supplier Just Introduced Quantity Discounts XYZ Store's Annual Demand Remains at 500 Units and Ordering

question 11

Multiple Choice

A pencil supplier just introduced quantity discounts.The price schedule follows.
$$\begin{array} { | c | c | } \hline \text { Order Quantity } & \text { Price per Unit } \\\hline 000 - 199 & \$ 4.00 \\200 - 399 & \$ 3.00 \\400 \text { and more } & \$ 2.00 \\\hline\end{array}$$
XYZ store's annual demand remains at 500 units and ordering cost at $10 per order.If annual holding cost is 10 percent of the pencils' per-unit price,what order quantity should XYZ select to minimize all costs?

• A) Fewer than or equal to 150 units
• B) Greater than 150 units but fewer than or equal to 199 units
• C) Greater than 199 units but fewer than or equal to 399 units
• D) Greater than 399 units

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Definitions:

Splitting

A defense mechanism in psychoanalysis where an individual views others or themselves as all good or all bad, lacking nuance.

Psychoanalytic Approaches

Therapy modalities based on Freudian concepts that explore unconscious motivations and early childhood experiences affecting current behaviors.

Personality Dynamics

The complex interplay of factors and forces within an individual that contribute to their characteristic patterns of thoughts, feelings, and behaviors.

Psychoanalytic Approaches

Methods in psychology that focus on unconscious motivations and conflicts as drivers of human behavior, originating from the theories of Freud.