Rocky mountains tire order each time it time

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Reference no: EM13941589

Rocky Mountain Tire Center sells 20,000 go-cart tires per year. The ordering cost for each order is $40, and the holding cost is 20% of the purchace price of the tires per year. The purchease price is $20 per tire if fewer than 500 tires are ordered, $18 per tire is 500 or more - but fewer than 1000 - tires are orderd and $17 per tire if 1,000 or more tires are ordered.
a. How many tires should Rocky Mountains tire order each time it time it places an order?
b. What is the total cost of this policy?

Reference no: EM13941589

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