Reference no: EM132762605

A mail-order house uses 16,190 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

Problem 1: Determine the optimal order quantity. (Round your answer to the nearest whole number.)

Problem 2: Determine the number of orders per year. (Round your answer to 2 decimal places.)