Question: Answer the next three questions using the following information: The annual demand for an item is 1 0 , 0 0 0 units. The cost

Answer the next three questions using the following information:
The annual demand for an item is 10,000 units. The cost to process an order is $75 and the annual inventory holding cost is 20% of item cost. The price structure is shown below.
Quantity Price
1-999 $2.50 per unit
1,000-7,999 $2.00 per unit
8,000 or more $1.80 per unit
What is the optimal order quantity?
Question 18 options:
A)999
B)1805
C)7999
D)1732
E)8000
Question 19(1 point)
What is the optimal order quantity of the second price class (10007,999)?
Question 19 options:
A)1732
B)1000
C)1936
D)1805
E)7999
Question 20(1 point)
What is the optimal total cost?
Question 20 options:
A)18453.75
B)18000.71
C)23831.02
D)19533.75
E)26000.5

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