A pencil supplier just introduced quantity discounts. The price schedule follows
Order Quantity Price per Unit
000 - 199 $4.00
200 - 399 $3.75
400 and more $3.50
XYZ store's annual demand remains at 350 units and ordering cost at $2 per order. If annual holding cost is 30 percent of the pencils' per-unit price, what order quantity should XYZ select to minimize all costs?
A) fewer than or equal to 150 units
B) greater than 150 units but fewer than or equal to 199 units
C) greater than 199 units but fewer than or equal to 399 units
D) greater than 399 units
C
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