Question: A store estimates their holding costs at 3 1 % and incurs a fixed cost of $ 6 5 . 0 0 for each order.

A store estimates their holding costs at 31% and incurs a fixed cost of $65.00 for each order. Demand for an item is 2,050 units per year. A supplier offers a price of $13.00 each for quantities of 450 or fewer and a price of $12.22 for quantities over 450 units.How many units should the retailer order at one time?What is the total annual cost at this order point?

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