Problem:
DST sells a range of hats. The company is based in D-land where the currency is the D$. Sales of the top selling hat are 600 units per year, each purchased by DST for D$25. The cost of holding one hat in inventory for a year is D$5, and the cost of placing an order is D$15 per order. DST has calculated the Economic Order Quantity to be 60 hats. DSD has been offered a 1% discount on the purchase cost if it orders 100 hats at a time. What is the overall impact on DST of taking this 1% discount? Solution A. Better off by D$190. B.Worse off by D$190. C.Better off by D$110. D.Worse off by D$110.