Question

# Bell Computers purchases integrated chips at ​\$350350 per chip. The holding cost is ​\$3737 per unit...

Bell Computers purchases integrated chips at

​\$350350

per chip. The holding cost is

​\$3737

per unit per​ year, the ordering cost is

​\$119119

per​ order, and sales are steady at

395395

per month. The​ company's supplier, Rich Blue Chip​ Manufacturing, Inc., decides to offer price concessions in order to attract larger orders. The price structure is shown below.

 Rich Blue​ Chip's Price Structure Quantity Purchased ​ Price/Unit ​ 1-99 units ​\$350 ​ 100-199 units ​\$325 200 or more units ​\$300

​a) What is the optimal order quantity and the minimum annual cost for Bell Computers to​ order, purchase, and hold these integrated​ chips?

The optimal order quantity after the change in pricing structure is nothing units ​(enter your response as a whole ​number).

The total annual cost for Bell computers to​ order, purchase, and hold the integrated chips is ​\$nothing ​(round your response to the nearest whole​ number).

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