Mail order

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Problem 13-13

A mail-order 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 BoxesPrice per Box
1,000 to 1,999$1.25                
2,000 to 4,9991.20                
5,000 to 9,9991.15                
10,000 or more1.10                


 

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  

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