Determine the optimal order quantity
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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 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 |
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| a. |
Determine the optimal order quantity. (Round your answer to the nearest whole number.) |
| Optimal order quantity | boxes |
| b. |
Determine the number of orders per year. (Round your answer to 2 decimal places.) |
| Number of order | per year |
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