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Rocky Mountain Tire Center sells 20,000 go-cart tires per year. The ordering cost for each order is $40, and the holding cost is 20% of the purchace price of the tires per year. The purchease price is $20 per tire if fewer than 500 tires are ordered, $18 per tire is 500 or more - but fewer than 1000 - tires are orderd and $17 per tire if 1,000 or more tires are ordered.
a. How many tires should Rocky Mountains tire order each time it time it places an order?
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