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How od determine the number of orders per year

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Reference no: EM132778979

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.

Reference no: EM132778979

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