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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA MA – FIA FMA › Order quantity
Sir, if the annual demand is of 45 items but the question states that if you order above 60 items you get 3% discount and if you order above 90, then you get 5% discount. The purchase price is 200$
So when I calculate the purchase price, do I multiply 60 with the purchase price or $45 with the purchase price, since my annual demand is 45 even though I am ordering 60.
Are you sure that the question says that the annual demand is 45 (and not the current order quantity)? Because it would be very unusual.
However, if it really is 45, then to get the total annual purchase cost you multiply 45 by the new purchase price.