The annual demand for an item is 20,000 units. The cost to process an order is $25 and the annual in

The annual demand for an item is 20,000 units. The cost to process an order is $25 and the annual inventory holding cost is $

The annual demand for an item is 20,000 units. The cost to process an order is $25 and the annual inventory holding cost is $4 per item per year. Given the following price-quantity breaks for purchasing the item: Quantity 1-1,999 2,000 or more Price $2.50 per unit $2.30 per unit What is the quantity you will order each time? Please provide detailed calculation of the total cost (including inventory cost and purchasing cost) for each quantity discount scenario.

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