Please do not give solution in image format thanku Wang Distributors has an annual demand for an airport metal detector of 1,420 units. The cost of a typical detector to Wang is $400.Carrying cost is estimated to be 20% of the unit cost, and the ordering cost is $27 per order. If Ping Wang, the owner, orders in quantities of100 or more, he can get a 10% discount on the cost of the detectors. So, the pricing structure is as follows:Price Range Quantity Purchased11-99 units2100 or more unitsPrice/Unit$400$360What is the optimal order quantity for the first price range? (Please round your response to the nearest whole number)O A 100O B. 165O C. 1O D. 31

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What is the optimal order quantity for the first price range? (Please round your response to the nearest whole number)

Practical Management Science

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ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

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Question

Please do not give solution in image format thanku

Wang Distributors has an annual demand for an airport metal detector of 1,420 units. The cost of a typical detector to Wang is $400.
Carrying cost is estimated to be 20% of the unit cost, and the ordering cost is $27 per order. If Ping Wang, the owner, orders in quantities of
100 or more, he can get a 10% discount on the cost of the detectors. So, the pricing structure is as follows:
Price Range Quantity Purchased
1
1-99 units
2
100 or more units
Price/Unit
$400
$360
What is the optimal order quantity for the first price range? (Please round your response to the nearest whole number)
O A 100
O B. 165
O C. 1
O D. 31

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