What is the optimal order quantity

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A local manufacturer uses 3,500 electronic switches boxes a year. Carrying costs are 25% of the cost of the switch per year, and ordering costs are $10 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                                          $25.50

100 - 999                                     $25.00

1000 or more $24.50

Reference no: EM131551482

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