Processing an order for more disks cost 15. zip uses 60000, Ask an Expert

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Zip Games purchases blank DVD disks onto which it copies its software for sale through its mail order operation. A disk costs Zip $.20. Processing an order for more disks cost $15. Zip uses 60000 disks annually, and the company has a 25% cost of capital.

a. Find the optimal order quantity.

b. How many orders are placed annually?

c. How frequently will orders be placed?

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