Question 5 Doug Brauer, the supplier of subassembly offers the following discounts schedule for its 4' x 8' sheets of quality plywood. ORDER UNIT COST 9 sheets or less $18.00 10 to 50 sheets $17.50 More than 50 sheets $17.25 Doug Brauer purchases plywood with an ordering cost of $45. The carrying cost is 20%, and the annual demand is 100 sheets. What do you recommend?

FINANCIAL ACCOUNTING
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Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Question 5
Doug Brauer, the supplier of subassembly offers the following discounts schedule for its 4' x 8"
sheets of quality plywood.
ORDER
UNIT COST
9 sheets or less
$18.00
10 to 50 sheets
$17.50
More than 50 sheets
$17.25
Doug Brauer purchases plywood with an ordering cost of $45. The carrying cost is 20%, and the
annual demand is 100 sheets. What do you recommend?
Transcribed Image Text:Question 5 Doug Brauer, the supplier of subassembly offers the following discounts schedule for its 4' x 8" sheets of quality plywood. ORDER UNIT COST 9 sheets or less $18.00 10 to 50 sheets $17.50 More than 50 sheets $17.25 Doug Brauer purchases plywood with an ordering cost of $45. The carrying cost is 20%, and the annual demand is 100 sheets. What do you recommend?
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