Posted: September 14th, 2022
Problem 1313
A mailorder house uses 16,820 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  [removed] boxes 
b. 
Determine the number of orders per year. (Round your answer to 2 decimal places.) 
Number of order  [removed] per year 
Place an order in 3 easy steps. Takes less than 5 mins.