Rocky Mountain Tire Center sells 8,000 go-cart tires per year.The ordering cost for each order is $35, and the holding cost is50% of the purchase price of the tires per year. The purchase priceis $24 per tire if fewer than 200 tires are ordered, $19 per tireif 200 or more, but fewer than 5,000 tires are ordered, and $13 pertire if 5,000 or more tires are ordered.
a. How many tires should Rocky Mountain order each time itplaces an order?
b. What is the total cost of this policy??
