A manager has just received a revised price schedule from a vendor shown in table below Quantity Unit Price 1 to 49 units $14 50 to 99 units $13 100 to 149 units $12 150 to 199 units $11 200 to 249 units $ 10 5 250 to 299 units $ 10 25 300 and above $10 units What order quantity should the manager use in order to minimize total costs Annual demand is 1200 units, ordering cost is $12, and annual carrying cost is $2 per unit

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Question: A manager has just received a revised price schedule from a vendor shown in table below: Quantity Unit Price 1 to 49 units $14 50

A manager has just received a revised price schedule from a vendor shown in table below:

Quantity	Unit Price
1 to 49 units	$14
50 to 99 units	$13
100 to 149 units	$12
150 to 199 units	$11
200 to 249 units	$ 10.5
250 to 299 units	$ 10.25
300 and above	$10 units

What order quantity should the manager use in order to minimize total costs? Annual demand is 1200 units, ordering cost is $12, and annual carrying cost is $2 per unit.

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