A company will begin stocking remote control devices. Expected monthly demand is 800 units. The controlers can be purchased from Supplier A with the following price schedule. Ordering cost is $40 and annual holding cost is 25 percent of unit price per unit.

Quantity	Unit Price
1-199	$14.00
200-499	$13.80
500+	$13.60

1) What order quantity is optimal if the intent is to minimize total annual costs? Note that you round your candidate order quantities to the nearest whole number before computing the corresponding total annual costs. (Round your answer to the nearest whole number.)

2) What is the minimum total annual costs? (Round your answer to the nearest whole number.)

3) If lead time is 2 months, at what point should the company reorder?