The supplier Sony Electronics uses (in Problem 1 of this homework) produces a new and updated price 1 answer below »

  1. The supplier Sony Electronics uses (in Problem 1 of this
    homework) produces a new and updated price list based on increased
    order quantities. The following list shows the new prices:

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    The supplier Sony Electronics uses (in Problem 1 of this homework) produces a new and updated price 1 answer below »
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    Order Essay
    Order Quantity Unit Price per Circuit Card
    1-499 $300.00
    500 – 999 $297.00
    1000 – 1499 $294.00
    1500 – 1999 $291.00
    2000+ $290.00

    What is the annual total cost if the unit price is $294?

    Hint: First, you need to calculate the corresponding
    EOQ.

    Then, check if the EOQ is smaller than their lower
    bounds.

    If it does, the best order quantity choice is the
    lower bound in the feasible region, not EOQ.

    $8,882,100

    $8,796,100

    $8,966,635.69

    $8,807,475