Compute the optimal order quantity

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zip games purchases 3.5 inch disks onto which it copies its software for sale through its mail order operation. a disk costs Zip $.20. processing an order for more disks cost $15. Zip uses 60000 disks annually, and the company has a 25% cost of capital. find the optimal order quantity, how many orders are placed annually, how frequently will orders be placed?

Reference no: EM1368541

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