Willard offers infestation services for friendly tenants according to the following price schedule: for up to 99 mice, the price is $1.02 each, for 100 up to 499 mice the price is $1.00 each, and for any order exceeding 500 mice, the cost is $0.98. He has a flat $1 delivery fee regardless of order quantity. Crystal will need 10,000 mice this year and face a $4 holding cost. What is her optimal order quantity and how much does Crystal save using this order quantity versus the next best order quantity?

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The Answer of Willard offers infestation services for friendly tenants according to the following price schedule: for up to 99 mice, the price is $1.02 each, for 100 up to 499 mice the price is $1.00 each, and for any order exceeding 500 mice, the cost is $0.98. He has a flat $1 delivery fee regardless of order quantity. Crystal will need 10,000 mice this year and face a $4 holding cost. What is her optimal order quantity and how much does Crystal save using this order quantity versus the next best order quantity?

Willard Offers Infestation Services for Friendly Tenants According to the Following