A manager just received a new price list from a supplier. Itwill now cost $1.00

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A manager just received a new price list from a supplier. Itwill now cost $1.00 a box for order quantities of 801 or moreboxes $1.10 a box for 200 to 800 boxes and $1.20 a box forsmaller quantities. Ordering cost is $82 per order and carryingcosts are $10 per box a year. The firm uses 3650 boxes a year. Themanager has suggested a round number order size of 800boxes. The managers rationale is that with a U-shaped cost curvethat is fairly flat at its minimum the difference in total annualcost between 800 and 801 units would be small anyway. What ordersize would you recommend? (Round your intermediate calculations to2 decimal places and final answer to the nearest whole number.)

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