Suppose that for the shipments above 300 lbs, but less than 10,000 lbs, a flat charge of $50 per shipment (not per lb) is charged, while for shipments below 300 lbs the rate remains at 20 cents per lb. The order quantity that should be used to minimize the sum of all relevant variable costs is now:
Q* = 612
Q* = 400
Q* = 725
Q* = 250
Q* = 360