A manufacturer of exercise equipment purchases the pulley section of the equipment from a supplier who lists these prices: less than 1,000, $5 each; 1,000 to 3,999, $4.95 each; 4,000 to 5,999,
$4.90 each; and 6,000 or more, $4.85 each. Ordering costs are $50, annual carrying costs per unit
are 40 percent of purchase cost, and annual usage is 4,900 pulleys.
Determine an order quantity
that will minimize total cost
