University Book Store Buys Women's Polo T-Shirts from a Supplier

Multiple Choice

University Book Store buys women's polo T-shirts from a supplier according to the price schedule shown below. The store sells 500,000 T-shirts each year. The annual carrying cost of T-shirts is 25 percent, and the ordering cost is $40. What order quantity would give the Book Store the lowest total acquisition cost? (Due to possible differences in rounding, choose the closest answer.)

A) 2,139
B) 2,237
C) 2,500
D) 2,614