Question: The Olde Town Microbrewery makes Townside beer, which it bottles and sells in its adjoining restaurant and by the case. It costs $ 1 7

The Olde Town Microbrewery makes Townside beer, which it bottles and sells in its
adjoining restaurant and by the case. It costs $1700 to set up, brew, and bottle a batch of
the beer. The annual cost to store the beer in inventory is $1.25 per bottle. The annual
demand for the beer is 21,000 bottles and the brewery has the capacity to produce 30,000
bottles annualy.
What is the optimal order quantity? Round to 2 decimal places.
Answer:
 The Olde Town Microbrewery makes Townside beer, which it bottles and

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