Question: A mail-order house uses 18,000 boxes a year. Carrying costs are 60¢ per box a year, and order costs are $96. The following price schedule applies. Determine

A. The optimal order quantity

B. The number of orders per year

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