A local post office uses 10,000 boxes a year.Carrying costs are 15 cents per box a year,and ordering costs are $20 per order.The following price schedule applies.What is the optimal order quantity?
$$\begin{array} { l c }
\text { Number of Boxes } & \text { Price per Box } \
0 - 199 & \$ 1.50 \
200 - 299 & \$ 1.25 \
300 - 399 & \$ 1.10 \
400 \text { or more } & \$ 1.00
\end{array}$$

Question

A local post office uses 10,000 boxes a year.Carrying costs are 15 cents per box a year,and ordering costs are $20 per order.The following price schedule applies.What is the optimal order quantity?
 $$\begin{array} { l c } 
\text { Number of Boxes } & \text { Price per Box } \
0 - 199 & \$ 1.50 \
200 - 299 & \$ 1.25 \
300 - 399 & \$ 1.10 \
400 \text { or more } & \$ 1.00
\end{array}$$

Quizplus · Accepted Answer

The Answer of A local post office uses 10,000 boxes a year.Carrying costs are 15 cents per box a year,and ordering costs are $20 per order.The following price schedule applies.What is the optimal order quantity?
 $$\begin{array} { l c } 
\text { Number of Boxes } & \text { Price per Box } \
0 - 199 & \$ 1.50 \
200 - 299 & \$ 1.25 \
300 - 399 & \$ 1.10 \
400 \text { or more } & \$ 1.00
\end{array}$$

A Local Post Office Uses 10,000 Boxes a Year