Reference no: EM132550709

Bell Computers purchases integrated chips at ?$350 per chip. The holding cost is ?$33 per unit per? year, the ordering cost is ?$119 per? order, and sales are steady at 395 per month. The?company's supplier, Rich Blue Chip? Manufacturing, Inc., decides to offer price concessions in order to attract larger orders. The price structure is shown below.

Rich Blue Chip's Price Structure

Quantity Purchased                        Price/Unit
1-99 units                                     $350
100-199 units                               $325
200 or moro units                           $300

Question 1: What is the optimal order quantity and the minimum annual cost for Bell Computers to? order, purchase, and hold these integrated? chips?

1. The optimal order quantity after the change in pricing structure is ______ units ?(enter your response as a whole ?number).
2. The total annual cost for Bell computers to? order, purchase, and hold the integrated chips is ?$_________ ?(round your response to the nearest whole? number).