Answer the question based on the picture below:

IN CLASS Exercises: Q3 The annual demand for an item is 40,000 units.The cost to process an order is $40 and the annual inventory holding cost is $3 per item per year.What is the optimal order quantity. given the following price breaks for purchasing the item? 1- 1 .4999 $2.50 1.500 4,999 $2.30 5,000 or more $2.25 a.What is the optimal behavior? b. Does the firm take advantage of the lowest price available? Explain. . 4.50 City government has collected the following data on annual sales tax collections and new car registrations: ANNUAL SALES TAX COLLECTIONS 1.0 1.4 1.9 2.0 1.8 2.1 23 (IN MILLIONS) NEW CAR REGISTRATIONS 10 12 15 16 14 17 20 (IN THOUSANDS) Determine the following: a) The least-squares regression equation. b) Using the results of part (a), find the estimated sales tax collec tions if new car registrations total 22,000 c) The coefficients of correlation and determination, PX