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QUESTION
The Global Packaging Co. offers the Q Milk Co. a quantity discount. If the Q Milk Co. orders a full container (30,000 units) per shipment they will...
The Global Packaging Co. offers the Q Milk Co. a quantity discount. If the Q Milk Co. orders a full container (30,000 units) per shipment they will reduce the purchase cost of each FourPak5.0 by 1% (all unit discounts).
If you were to take this discount, how much would you order and what would your expected Total Annual Cost be?
What would your order quantity be if you take this discount?
