Question: A mail - order house uses 1 6 , 1 2 5 boxes a year. Carrying costs are 5 6 cents per box a year,

A mail
-
order house uses
1
6
,
1
2
5
boxes a year. Carrying costs are
5
6
cents per box a year, and ordering costs are $
9
3
.
The following price schedule applies. Number of Boxes Price per Box
1
,
0
0
0
to
1
,
9
9
9
$
1
.
3
5
2
,
0
0
0
to
4
,
9
9
9
1
.
2
5
5
,
0
0
0
to
9
,
9
9
9
1
.
1
5
1
0
,
0
0
0
or more
1
.
1
0
Click here for the Excel Data File a
.
Determine the optimal order quantity.
(
Round your answer to the nearest whole number.
)
b
.
Determine the number of orders per year.
(
Round your answer to
2
decimal places.
)

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