What is the optimal order quantity for the first price range? (Please round your response to the nearest whole number)

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Wang Distributors has an annual demand for an airport metal detector of 1,420 units. The cost of a typical detector to Wang is $400.
Carrying cost is estimated to be 20% of the unit cost, and the ordering cost is $27 per order. If Ping Wang, the owner, orders in quantities of
100 or more, he can get a 10% discount on the cost of the detectors. So, the pricing structure is as follows:
Price Range Quantity Purchased
1
1-99 units
2
100 or more units
Price/Unit
$400
$360
What is the optimal order quantity for the first price range? (Please round your response to the nearest whole number)
O A 100
O B. 165
O C. 1
O D. 31
Transcribed Image Text:Wang Distributors has an annual demand for an airport metal detector of 1,420 units. The cost of a typical detector to Wang is $400. Carrying cost is estimated to be 20% of the unit cost, and the ordering cost is $27 per order. If Ping Wang, the owner, orders in quantities of 100 or more, he can get a 10% discount on the cost of the detectors. So, the pricing structure is as follows: Price Range Quantity Purchased 1 1-99 units 2 100 or more units Price/Unit $400 $360 What is the optimal order quantity for the first price range? (Please round your response to the nearest whole number) O A 100 O B. 165 O C. 1 O D. 31
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