M. P. VanOyen Manufacturing has gone out on bid for a regulator component. Expected demand is 700 units per month. The item can be purchased from either Allen Manufacturing or Baker Manufacturing. Their price lists are shown in the table. Ordering cost is $45, and annual holding cost per unit is $4.

Allen Mfg. Quantity Unit Price 1 - 499 $16.00 500 - 999 $15.50

1000+ $15.00

Baker Mfg. Quantity Unit Price 1 - 399 $16.10 400 - 799 $15.60 800+ $15.10

?c) What is the optimal order quantity and total annual cost of? ordering, purchasing, and holding the? component?

?