Mac-in -the box, Inc., sells computer equipment by mail and telephone order. Mac sells $1,200 flat-bed scanner per year. Ordering cost is $300, and annual holding costs is 16 perecent of the item's price. The scanner manufcturer offers the following price structure to Mac-in-the-box:
Order Quantity Price Per Unit
0-11 $520
12-143 $500
144 or more $400
What order quantity minimizes total annual costs?