Question: David sells 1 0 0 computers per month. He orders one month s stock to arrive at the beginning of each month. The ordering cost

David sells 100 computers per month. He orders one months stock to arrive at the beginning of each month. The ordering cost is $100. Holding costs are 25%. The wholesale cost for the computers is $500 for orders under 200 units. There is a 5% discount for an order of over 200 and 6% for orders over 400.
a. How many computers should David order at a time?
b. What is the total savings, if any, over the total cost of inventory using Davids current policy?

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