Consider the following data supplied by Cotton Tops,a t-shirt distributor:
The manager charges equipment set-up costs as a separate cost to the purchase price of $4.92 per t-shirt.Calculate the total inventory costs if the manufacturer offered Cotton Tops a 2 per cent quantity discount for orders of 10 000 or more and Cotton Tops' economic order quantity is 10 000 units.

Question

Consider the following data supplied by Cotton Tops,a t-shirt distributor: 
The manager charges equipment set-up costs as a separate cost to the purchase price of $4.92 per t-shirt.Calculate the total inventory costs if the manufacturer offered Cotton Tops a 2 per cent quantity discount for orders of 10 000 or more and Cotton Tops' economic order quantity is 10 000 units.

Quizplus · Accepted Answer

The Answer of Consider the following data supplied by Cotton Tops,a t-shirt distributor: 
The manager charges equipment set-up costs as a separate cost to the purchase price of $4.92 per t-shirt.Calculate the total inventory costs if the manufacturer offered Cotton Tops a 2 per cent quantity discount for orders of 10 000 or more and Cotton Tops' economic order quantity is 10 000 units.

Consider the Following Data Supplied by Cotton Tops,a T-Shirt Distributor