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2. Amanager of a college bookstore, Emily Ford purchases polo shirts from a local vendor with the college name and logo printed on them. Emily
2. Amanager of a college bookstore, Emily Ford purchases polo shirts from a local vendor with the college name and logo printed on them. Emily purchases these polo shirts from the vendor at a cost of US $20 per shirt. The bookstore incurs an ordering cost of US $80 per order, and the annual holding cost is 20% of the purchase cost of a shirt. Emily estimates that the demand for the polo shirts for the upcoming year will be 2,000 shirts. The vendor is willing to offer quantity discounts to the bookstore according to the schedule in Table 9.3.(18 points) Table 9.3. Vendor Discount Schedule Order Quantity %Discount on per- unit purchase cost O to 499 0% 500 to 699 3% 700 to 999 4% 1,000+ 5% Given this quantity discount schedule, what is the optimal quantity of polo shirts that Emily should order, and what would be the total annual cost at this optimal order quantity
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