Question: A small mail - order company uses 2 0 , 0 0 0 boxes a year. Holding cost rate is 2 1 percent of unit

A small mail-order company uses 20,000 boxes a year. Holding cost rate is 21 percent of unit cost per year, and ordering cost is $36 per order. The following quantity discounts are available.
Number of Boxes Price per Box
1,000 to 1,999 $1.50
2,000 to 4,9991.45
5,000 to 9,9991.42
10,000 or more 1.39
a. Determine the optimal order quantity.
Optimal order quantity
boxes _______
b. Determine the number of orders per year. (Round the final answer to 1 decimal place.)
No. of orders per year ______

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