Zip Games purchases blank DVD disks onto which it copies its software for sale through its mail-order operation.A disk costs Zip $0.20.Processing an order for more disks cost $15.Zip uses 60,000 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?

Question

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The Answer of Zip Games purchases blank DVD disks onto which it copies its software for sale through its mail-order operation.A disk costs Zip $0.20.Processing an order for more disks cost $15.Zip uses 60,000 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?

Zip Games Purchases Blank DVD Disks onto Which It Copies