If she wishes to order in lots no larger than 50, what should be her fixed ordering costs?

Question

A retailer estimates her fixed costs for placing an order at $1,000. Presently she orders in optimal quantities of 400 units. She has, however, heard of the benefits of just-in-time purchasing—a principle that advocates purchasing goods in smaller lots as a means of keeping inventory down. If she wishes to order in lots no larger than 50, what should be her fixed ordering costs?

Answer 1

33. If you disagree then do your own damn homework.