The annual demand for an item is 40,000 units. The ordering cost is $40 and the carrying cost is assumed to be 20% of the price. What is the optimal order quantity, given the following price schedule for purchasing the item? Should we take advantage of the quantity discount? Quantity Price 1-1,499 $2.50 per unit 1,500 - 4,999 $2.30 per unit 5,000 or more $2.00 per unit.