1. An auto manufacturer uses 500 tons of steel per day. Each order incurs a fixed cost of $2,250. Suppose that the steel supplier offers the auto manufacturer a price of $1,490 per ton of steel if Q < 1200 tons; $1,220 per ton of steel if 1200 Q < 2400 tons; and $1,100 per ton of steel if Q 2400 tons. The annual holding cost rate, i is 0.25. (a) Calculate Q for the all units discount structure. (b) Calculate the average total cost that the company will incur with the optimal order quantity you calculated above.