Carrying costs are 60 cents per box a year, and ordering costs
by ella | Aug 20, 2025 | Business
Problem 13-13
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A mail-order house uses 16,590 boxes a year. Carrying costs are 60 cents per box a year, and ordering costs are $96. The following price schedule applies.
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| 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 answer to the nearest whole number.)
|
| Optimal order quantity |
boxes |
| b. |
Determine the number of orders per year. (Round your answer to 2 decimal places.)
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