Reference no: EM132713992

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 Box

1,000 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 __________