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With a fixed cost of $ 1 0 0 per order, Nathan decided it was vital to get his moneys worth. His monthly demand for

With a fixed cost of $100 per order, Nathan decided it was vital to get his moneys worth. His monthly demand for energy drinks was 10,000 bottles and a holding cost was estimated at 20% of unit cost. The mail order company offered him a couple of possibilities- he could pay $4 per bottle for orders of up to 10,000 bottles. After that threshold, he would pay only $3.98 per bottle, and if he ordered 20000 or more bottles in an order, he will pay only $3.96 per bottle. What is the best order quantity for Nathan to use?

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