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home / study / business / operations management / questions and answers / bell computers purchases integrated chips at $350 ... Question: Bell computers purchases integrated chips at $350 ... Bell computers purchases integrated chips at $350 per chip. The holding cost is $36 per unit per year, the ordering cost is $119 per order, and sales are steady at 395 per month. The company's supplier, Rich Blue Chip Manufacturing Inc., decides to offer price concessions in order to attract larger orders. The price structure is shown below.

Quantity Purchased Price/Unit 1-99 Units $350 100-199 $325 200 or more units $300