A Company That Distributes Landscape Materials Buys 4,000 Tons of Pine

Multiple Choice

A company that distributes landscape materials buys 4,000 tons of pine mulch a year. The ordering fee is $30 per shipment, the mulch costs them $20 per ton, and annual storage costs are $1.50 per ton. How many tons should be ordered in each shipment to minimize the total annual cost?

A) 2,000 tons
B) 400 tons
C) 200 tons
D) 500 tons