The deans' suite hoped to cut costs and decided to perform a total cost analysis on its tequila supplier. Consumption was currently 10,000 bottles per semester and this was predicted to maintain that level for the next few years. Their current source, Byron's, charged $15.50 per bottle and packed 300 bottles in a crate. The cost to ship the crate was $15. Another potential source of tequilas was Pancho's, who charged $14.75 per bottle but could ship only 100 bottles in a crate and at a higher price, $75. Assume that a partial crate may be purchased. Conduct a total cost analysis and make a recommendation.

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The Answer of The deans' suite hoped to cut costs and decided to perform a total cost analysis on its tequila supplier. Consumption was currently 10,000 bottles per semester and this was predicted to maintain that level for the next few years. Their current source, Byron's, charged $15.50 per bottle and packed 300 bottles in a crate. The cost to ship the crate was $15. Another potential source of tequilas was Pancho's, who charged $14.75 per bottle but could ship only 100 bottles in a crate and at a higher price, $75. Assume that a partial crate may be purchased. Conduct a total cost analysis and make a recommendation.

The Deans' Suite Hoped to Cut Costs and Decided to Perform