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A manager just received a new price list for boxes from a supplier . it will now cost$1.10 a box for order quantities of 801 or more ,$1.10 a box f0r...

A manager just received a new price list for boxes from a supplier . it will now cost$1.10 a box for order quantities of 801 or more ,$1.10 a box f0r 200 to 800 ,and $1.20 a box for smaller quantities . ordering cost is $40 percent of unit cost per year .The company uses 3,6000 boxes a year . the manager has suggested a round number orer quantity of 800 boxes the manager rationale is that total inventory cost is U shaped and fairly flat at its minimum . therefore the difference in total cost between 800 and 801 units would be small anyway . how would you reply to the managers suggestion?what order quantity woud you recommend?

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