Question: A retailer estimates her fixed cost for placing an order at $1280. Presently, she orders in optimal quantities of 400 units. She has, however, heard

A retailer estimates her fixed cost for placing an order at $1280. Presently, she orders in optimal quantities of 400 units. She has, however, heard of the benefits of just-in-time purchasing- a principle that advocates purchasing goods in smaller batches as a means of keeping inventory down. If she wishes to order in lots no larger than 50 units, and assuming she wants to keep her total costs optimal, what should be her fixed cost for placing an order?

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