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Morgan Arthur has spent the past few weeks deter - mining inventory costs for Armstrong, a toy manu - facturer located near Cincinnati, Ohio. She

Morgan Arthur has spent the past few weeks deter- mining inventory costs for Armstrong, a toy manu- facturer located near Cincinnati, Ohio. She knows that annual demand will be 30,000 units per year and that the carrying cost will be $1.50 per unit per year. The ordering cost, on the other hand, can vary from $45 per order to $50 per order. During the past 450 working days, Morgan has observed the following frequency distribution for the ordering cost

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