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Rocky Mountain Tire center sells 8,000 go-cart tires per year. The ordering cost for each order is $40, and the holding cost is 30% of the purchase price of the tires per year. The purchase price is $22 per tire if fewer than 200 tires are ordered, $19 per tire if 200 or more, but fewer than 5,000 tires are ordered, and $16 per tire if 5,000 or more tires are ordered.
a.) How many tires should Rocky Mountain order each time it places an order?
b.) Assuming Rocky Mountain Tire Center orders (answer from above) tires per order, what is the total annual cost?
c.) Total cost given an order quantity of 5,000 units at $13 = ?
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