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A mail-order house uses 16,570 boxes a year. Carrying costs are 60 cents per box a year, and ordering costs are $96. The following price
A mail-order house uses 16,570 boxes a year. Carrying costs are 60 cents per box a year, and ordering costs are $96. The following price schedule applies.
Number of Boxes - Price Per Box
1,000-1,999 $1.25
2,000 - 4,999 $1.20
5,000 - 9,999 $1.15
10,000 or more $1.10
A: Determine the optimal order quantity. (Round to nearest whole number)
B: Determine the number of orders per year. (Round 2 decimal places)
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