A local manufacturer uses 8,000 electronic switches boxes a year. Carrying costs are 20% of the cost of the switch per year, and ordering costs are $25 per order. The following price schedule applies. What is the optimal order quantity? Provide all total cost calculations and explain your answer.

Number of Switches              Price per Switch

0 – 299                                         $17.00

300 – 499                                    $16.00

500 or more                               $15.00