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Problem regarding the optimal order quanitity?

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A mail-order house uses 16,880 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

Optimal Order quanitity?

Reference no: EM131036185

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