What is the total cost of this policy

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Reference no: EM131118380

Rocky mountain tire center sells 12,000 go cart tires per year. The ordering cost for each order is $40, and the holding cost is 40% of the purchase price of the tires per year. The purchase price is $25 per tire if fewer than 200 tires are orderd, $18 per tire if 200 or more are ordered, but fewer than 5,000 tires are ordered, and $14 per tire if 5,000 or more tires are ordered.

A) rocky mountains optimal order quantity is ____ units?

B) what is the total cost of this policy?

Reference no: EM131118380

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