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Zip Games purchases blank DVD disks onto which it copies its software for sale through its mail order operation. A disk costs Zip $.25. Processing

Zip Games purchases blank DVD disks onto which it copies its software for sale through its mail

order operation. A disk costs Zip $.25. Processing an order for more disks cost $16. Zip uses 62,000

disks annually, and the company has a 24% cost of capital.

a. Find the optimal order quantity.

b. How many orders are placed annually?

c. How frequently will orders be placed?

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