Seward Company buys 35,000 lb of flour annually. The cost of placing an order is estimated to be $35, and its cost of capital is 12%. The storage and handling costs are estimated to be 2 cents per lb annually, at the average inventory level. The price of flour is as follows: up to a 1000 lbs at 12 per lb, 1,000 to 4999 lbs at 11 per lb, and 5,000 lbs and over at 10 per lb. Find the optimal order quantity of flour for Seward.

8750 lb