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A mail-order house uses 17,900 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 17,900 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 to 1,999        $1.25              

 2,000 to 4,999         1.20               

5,000 to 9,999          1.15                

10,000 or more         1.10               

 

a. Determine the optimal order quantity. (Round your answer to the nearest whole number.)


 

  Optimal order quantity______ boxes 

 

b. Determine the number of orders per year. (Round your answer to 2 decimal places.)


 

  Number of order______ per year  

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