A restaurant uses 120 000 take-away boxes per year. Carrying costs are 20 cents per box & ordering costs are R56.00. The following price schedule applies:

No. of boxes	Price per Box (R's)
1000 - 1999	1.25
2000 - 4999	1.20
5000 - 9999	1.15
10000 or more	0.80

Required:

2.2.1 Calculate the total cost of take-away boxes. (5 marks ) 2.2.2 Apply the discounted values and recommend which option you would choose. (10 marks )