Carrying costs are 60 cents per box a year, and ordering costs

QUESTION

Problem 13-13A mail-order house uses 16,590 boxes a year. Carrying costs are 60 cents per box a year, and ordering costs are $96. The following price schedule applies.Number of BoxesPrice per Box1,000 to 1,999$1.25 2,000 to 4,9991.20 5,000 to 9,9991.15 10,000 or more1.10 a.Determine the optimal order quantity. (Round your answer to the nearest whole number.) Optimal order quantity boxes b.Determine the number of orders per year. (Round your answer to 2 decimal places.) Number of order per year

ANSWER:

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