Question: Problem 2 (20 points) A mail-order house uses 15,000 boxes a year. Carrying costs are 70 cents per box a year, and ordering costs are

Problem 2 (20 points) A mail-order house uses
Problem 2 (20 points) A mail-order house uses 15,000 boxes a year. Carrying costs are 70 cents per box a year, and ordering costs are $96. The following price schedule applies. Determine a. Determine the optimal order considering the price discounts. b. Calculate the total cost for the optimal order quantity. The number of orders per year. A mail-order house uses 18.000 hoxes a year. Carrying costs are 60 cents per box a year, and order- ing costs are $96. The following price schedule applies. Determine a. The optimal order quantity. 1. The number of orders per year. Number of Boxes Price per Box 1,000 to 1.999 $1 25 2,000 to 4.999 1.20 5,000 to 9.999 1.15 10.000 or more 1.10

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