Question: A distributor uses 1 0 0 0 packing crates a month, which it purchases at a cost of $ 1 0 each. The warehouse manager

A distributor uses 1000 packing crates a month, which it purchases at a cost of $10 each. The warehouse manager has assigned an annual carrying cost of 40% of the purchase price per crate. The fixed cost of ordering is $400.
What is the optimal quantity of packing crates to order?

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