Question: North Manufacturing has a demand for 1,000 pumps each year. The cost of a pump is $50. It cost North Manufacturing $40 to place a order, and the carrying cost is 25% of the unit cost. If pumps are ordered in quantities of 200, North Manufacturing can get a 3% discount on the cost of pumps. Should North Manufacturing orders 200 pumps at a time an take the 3% discount?