How many tires should rocky mountain order each time

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Rocky Mountain Tire Center sells 14,000 go-cart tires per year. The ordering cost for each order is $35 and the holding cost is 30% of the purchase price of the tires per year. The purchase price is $26 per tire if fewer than 200 tires are ordered, $16 per tire if more than 200 tires are ordered, but fewer than 5,000 tires are ordered, and $13 per tire if 5,000 or more tires are ordered.

a. How many tires should Rocky Mountain order each time it places an order?

b. What is the total cost of this policy?

Reference no: EM132169311

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