Toddlers toys sell a particular novelty item at a rate of


Question: Toddler's Toys sell a particular novelty item at a rate of 900 units per month. It costs $200 to place an order, and storage costs are $1 per unit per month. Toddler's relies on the EOQ model for its inventory management. How much of a discount on the purchase price must the supplier offer in order to encourage orders of 1,000 units?

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