Question: Chapter 1 2 , problem 1 3 A mail - order house uses 1 8 , 0 0 0 boxes a year. Carrying costs are

Chapter 12, problem 13
A mail-order house uses 18,000 boxes a year. Carrying costs are 60 cents per box a year, and ordering costs are $96. The following price schedule applies.
Number of Boxes Price per Box
1,000 to 1,999 $1.25
2,000 to 4,9991.20
5,000 to 9,9991.15
10,000 or more 1.10
What is the lowest annual total cost of these boxes?

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