Sarah's Computer City sells 5,000 boxes of CD -RW compact discs per year. She determined that she pays $50 to process an order for discs. Her purchase price is $6 for each box of discs and she has determined that storage costs for one year are 25 percent of the purchase price. Sarah's vendor said that if she purchased 1,000 boxes at a time, she would receive a 10 percent discount. What quantity should Sarah order if the total cost formula is TC = DP +QIP/2 +DS/Q ?
A) 578
B) 1,000
C) 500
D) 5,000

Question

Quizplus · Accepted Answer

Ordering 1,000 boxes at a time allows Sarah to receive a 10 percent discount on her purchase price, which would reduce her total cost according to the given total cost formula.

Sarah's Computer City Sells 5,000 Boxes of CD -RW Compact