Question: 1 . An optometrist orders eyeglass frames at a cost of $ 6 0 per frame and sells each frame for $ 7 0 .

1. An optometrist orders eyeglass frames at a cost of $60 per frame and sells each frame for $70. Annual holding cost is 25% of the optometrists cost of purchasing a frame. Each time frames are ordered, a cost of $175 is incurred. Because of lost goodwill, a cost of $60 is incurred each time a customer wants a frame that is not in stock. Frames are delivered two weeks after an order is placed. Annual demand for frames is N(1,040,20.42).

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