1. A high volume quick-lube is trying to determine how many cases of oil they should order from their oil distributor per time to service their business. Their business uses 60,000 cases of oil per year. The annual carrying cost is 20% of the purchase cost. Their order cost is $8.50. The distributor delivers their orders all at one time, but offers the following quantitity discounts on larger quantities ordered.

   Discount Category Range of Order Quantites Unit Cost

   1 1 - 999 $5.00

   2 1000 - 1999 $4.50

   3 2000 + $4:25

   The minimum total cost that can be achieved for this scenario is:

   	a.	$255,931
   	b.	$270,958
   	c.	$256,105
   	d.	$298,160