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A mail-order house uses 16,750 boxes a year. Carrying costs are 60 cents per box a year, and ordering costs are $96. The following price schedule applies.
Number of Boxes Price per Box1,000 to 1,999 $1.25 2,000 to 4,999 1.20 5,000 to 9,999 1.15
10,000 or more 1.10 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 __________
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