Bell Computers purchases integrated chips at $350 per chip. The holding cost is $35 per unit per year, the ordering cost is $122 per order, and sales are steady at 395 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)

The optimal order quantity after the change in pricing structure is_____

The total annual cost for Bell computers to order, purchase, and hold the integrated chips is____

b) Bell Computers wishes to use a 10% holding cost rather than the fixed holding cost in part a.

The optimal order quantity after the change in the holding cost calculation is ____

The total annual cost for Bell computers to order, purchase, and hold the integrated chips is ____