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Consider the All-Units Quantity Discount Schedule Below

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Consider the all-units quantity discount schedule below. The annual demand is 90,000 units, setup cost is $1000 per order, and annual holding cost is 30% of the unit cost. What is the optimal order quantity? Consider the all-units quantity discount schedule below. The annual demand is 90,000 units, setup cost is $1000 per order, and annual holding cost is 30% of the unit cost. What is the optimal order quantity?   A)  1500 B)  1690 C)  1414 D)  1000 E)  1549

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Definitions:

Operating Cash Flow

denotes the cash generated from a company’s normal business operations, indicating whether a company can maintain and grow its operations.

NPV

Net Present Value; a method used in capital budgeting to evaluate the profitability of an investment or project.

IRR

The Internal Rate of Return is a financial indicator utilized to evaluate the potential returns of investments.

Bid Price

The highest price that a buyer is willing to pay for a security.

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