Al Maha Company is specialized in mangoes distribution in the city of Muscat. Sales are 450 units per month. It costs OR 10 to make and receive an order and holding cost is OR 3.5 per unit per year. The prices depend on quantities purchased such that the order quantities from 1 to 199 at a unit price RO 5; quantity 200 to 499 at a unit price 4.5 RO; and quantity 500 and more at a per unit price of 4 RO. If the discount option is considered, then the what is the total annual cost of the best option including purchasing cost Select one: O a. 25000 O b. 29813 Oc. 22583 O d. None is correct e. 24920
Al Maha Company is specialized in mangoes distribution in the city of Muscat. Sales are 450 units per month. It costs OR 10 to make and receive an order and holding cost is OR 3.5 per unit per year. The prices depend on quantities purchased such that the order quantities from 1 to 199 at a unit price RO 5; quantity 200 to 499 at a unit price 4.5 RO; and quantity 500 and more at a per unit price of 4 RO. If the discount option is considered, then the what is the total annual cost of the best option including purchasing cost Select one: O a. 25000 O b. 29813 Oc. 22583 O d. None is correct e. 24920
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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14/ Do not solve it in excel, please.
![Al Maha Company is specialized in mangoes distribution in the city of Muscat. Sales are 450
units per month. It costs OR 10 to make and receive an order and holding cost is OR 3.5 per
unit per year. The prices depend on quantities purchased such that the order quantities from 1
to 199 at a unit price RO 5; quantity 200 to 499 at a unit price 4.5 RO; and quantity 500 and
more at a per unit price of 4 RO. If the discount option is considered, then the what is the total
annual cost of the best option including purchasing cost
Select one:
O a. 25000
b. 29813
O c. 22583
O d. None is correct
e. 24920](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F22757214-043e-44e2-8f10-6ee7d2e36f8c%2Fbf241d3f-b225-4719-99a0-3f34715e4b3d%2Fz3gvt4_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Al Maha Company is specialized in mangoes distribution in the city of Muscat. Sales are 450
units per month. It costs OR 10 to make and receive an order and holding cost is OR 3.5 per
unit per year. The prices depend on quantities purchased such that the order quantities from 1
to 199 at a unit price RO 5; quantity 200 to 499 at a unit price 4.5 RO; and quantity 500 and
more at a per unit price of 4 RO. If the discount option is considered, then the what is the total
annual cost of the best option including purchasing cost
Select one:
O a. 25000
b. 29813
O c. 22583
O d. None is correct
e. 24920
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