Question: Problem 3 ( 15 Points) A mail-order house uses 18,000 boxes a year. Carrying costs are 60 cents per box a year, and ordering costs

Problem 3 ( 15 Points) A mail-order house uses

Problem 3 ( 15 Points) 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 4,999 1.20 5,000 to 9,999 1.15 10,000 or more 1.10 a. Determine the optimal order quantity. (Round your intermediate calculations to 2 decimal places and final answer to the nearest whole number.) 2DS Qo = H TC = 2 H + S + PD 2 Hint: You will also need to find the total cost for each level to determine which quantity yields lowest total cost. Since this quantity is feasible in the range 2000 to 4,999, its total cost and the total cost of all lower price breaks (i.e., 5,000 and 10,000) must be compared to see which is lowest

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