Bell Computers purchases integrated chips at $350 per chip. The holding cost is $37 per unit per year, the ordering cost is $118 per order, and sales are steady at 405 per month. The company's supplier, Rich Blue Chip Manufacturing, Inc., decides to offer price concessions in order to attract larger orders. The price structure is shown below.

Rich Blue Chip's Price Structure
Quantity Purchased	Price/Unit
1-99 units	$350
100-199 units	$325
200 or more units	$300

a) What is the most cost-effective order quantity and the minimum annual cost for Bell Computers to order, purchase, and hold these integrated chips, using the data and discount choices provided, and using a fixed holding cost?

The most cost-effective order quantity (assuming they take the most cost-effective discount and use a fixed holding cost) is ____

units (enter your response as a whole number).

At the chosen level of the quantity discount, and using the fixed holding cost, what is the total annual cost for Bell computers to order, purchase, and hold the integrated chips :

$___

(round your response to the nearest whole number).

b) Bell Computers wishes to recalculate using a 10% holding cost rather than the fixed $37 holding cost in part a. What is the most cost-effective order quantity, and what is the corresponding annual cost? The most cost-effective order quantity (assuming they take the most cost-effective discount, and use a percentage-of-price holding cost) is

___ units (enter your response as a whole number).

At the chosen level of the quantity discount, and using the percentage-of-price holding cost, what is the total annual cost for Bell computers to order, purchase, and hold the integrated chips :

$___ (round your response to the nearest whole number).