A company that distributes landscape materials buys 4,000 tons of pine mulch a year. The ordering fee is $30 per shipment, the mulch costs them $20 per ton, and annual storage costs are $1.50 per ton. How many tons should be ordered in each shipment to minimize the total annual cost?
A) 2,000 tons
B) 400 tons
C) 200 tons
D) 500 tons
Correct Answer:
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