A particular raw material is available to a company at three different prices, depending on the size of the order:
(1) less than 100 pounds is $20/pound,
(2) 100 pounds to 1,000 pounds is $19/pound, and
(3) more than 1,000 pounds is $18/pound.
The cost to place an order is $40. Annual demand is 3,000 pounds. Holding (or carrying cost) is 25% of the material price.
What is the economic order quantity for the material?