Community Hospital orders latex sanitary gloves from a hospital supply firm. The hospital expects to use 40,000 pairs of gloves per year. The cost to order and to have the gloves delivered is $180. The annual carrying cost is $0.18 per pair of gloves. The hospital supply firm offers the following quantity discount pricing schedule:

Quantity Price 0–9,999 $0.34 10,000–19,999 0.32 20,000–29,999 0.30 30,000–39,999 0.28 40,000–49,999 0.26 50,000+ 0.24 Determine the optimal order size for the hospital.

 LO.1