The Toledo Mudhens, a minor league baseball team, breaks an average of seven bats per week during a 38 week season. The team purchases it bats from a national supplier. The order cost is $185 and the annual holding cost is 24 percent of the purchase price.
Assume the bat manufacturer offers the Mudhens the following price schedule
Order Quantity Price per Unit
1 – 49 $25.00
50 - 143 $24.00
144 or more $23.50
How many bats should the team order if the discount applies to all units?
What is the total annual cost associated with the best order quantity?