A jewelry firm buys semiprecious stones to make bracelets, necklaces and rings. The Supplier quotes a prices of $8.00 per stone for quantities of 600 stones or more, $9.00 for quantities from 400 to 599 stones and $10.00for quantites from 1 to 399 stones. The firm operates 200 days per year and uses 25 stones per day. The firm's ordering costs are $48 per order and holding costs are $2.00 per stone per year.
Determine the order quantity that will minimize your total annual cost.