1. A lab is trying to determine how many test kits it should order from its supplier. They use 780 kits per year. The annual holding cost is $3 per kit per year. The ordering cost is $15 per order. The supplier delivers their orders all at one time, but offers a quantity discount. What is the optimum condition (order quantity) and total cost (ordering, holding and item cost)? Draw the Order quantity (Q) verses Total Annual Cost graph with 3 item prices (as shown in Figure 12.7 of the textbook). Quantity 1-72 $Price 60 73-144 56 145 and more 53