Estimated demand for gold-filled lockets at Sam's Bargain Jewelry and Housewares is 2,420 lockets a

year. Manager Veronica Wan has indicated that ordering cost is $45, and that the following price schedule

applies: 1 to 599 lockets, $.90 each; 600 to 1,199 lockets, $.80 each; and 1,200 or more, $.75 each. What

order size will minimize total cost in each of these cases:

(A) Carrying cost is $.18 per locket on an annual basis.

(B) Carrying cost is 20 percent of price on an annual basis.