IMG_1722.heic 6-47 John Lindsay sells CDs that contain 25 software packages that perform a variety of financial function

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IMG_1722.heic
6-47 John Lindsay sells CDs that contain 25 software packages
that perform a variety of financial functions, including net
present value, internal rate of return, and other financial
programs typically used by business students majoring in finance.
Depending on the quantity ordered, John offers the following price
discounts. The annual demand is 2,000 units on average. His setup
cost to produce the CDs is $250. He estimates holding costs to be
10% of the price, or about $1 per unit per year.
(a) What is the optimal number of CDs to produce at a
time?
(b) What is the impact of the following quantity–price schedule
on the optimal order quantity?