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Discuss a cost of the detectors

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Q: A distributor of metal detectors has an annual demand of two thousand units for a certain type.The cost to the distributor is $400 per detector, carrying cost is estimated to be 20% of the unit cost and the ordering cost is $25 per order. If the Distributor orders in quantities of 250 or more, he can get a discount of 10% on the cost of the detectors. Assuming that the demand is constant, should the distributor take the discount? Show your working.

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Basic Statistics: Discuss a cost of the detectors

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