Question: A store estimates their holding costs at 2 0 % and incurs a fixed cost of $ 7 6 . 0 0 for each order.

A store estimates their holding costs at 20% and incurs a fixed cost of $76.00 for each order. Demand for an item is 1.725 units per year. A supplier offers a price of $14.00 each for quantities of 425 or fewer and a price of $13.30 for quantities over 425 units. Round your answer to the nearest integer value. How many units should the retailer order at one time? What is the total annual cost at this order point?

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