Reference no: EM132093427

Problem: A local manufacturer uses 2,000 electronic switches boxes a year. Carrying costs are 23% of the cost of the switch per year, and ordering costs are $15 per order. The following price schedule applies. What is the optimal order quantity? Show all total costs calculations and explain your answer.

Number of Switches              Price per Switch

0 - 99                                         $17.50

100 - 999                                    $17.00

1000 or more                              $16.50