Question: A mail - order house uses 1 8 , 0 0 0 boxes a year. Carrying costs are 6 0 cents per box a year,

A mail-order house uses 18,000 boxes a year. Carrying costs are 60 cents per box a year, and ordering costs are $96. The following price schedule applies.
Number of Boxes Price per Box
1,000 to 1,999 $1.25
2,000 to 4,9991.20
5,000 to 9,9991.15
10,000 or more 1.10
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a. Determine the optimal order quantity. (Round your intermediate calculations to 2 decimal places and final answer to the nearest whole number.)
b. Determine the number of orders per year. (Round your answer to 1 decimal place.)
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