The annual demand, ordering cost, and the annual inventory carrying cost rate for a certain item are 600 units, $20/order and 30% of item price, respectively. Price is established by the following quantity discount schedule.
Quantity: (1 to 49 ) (50 to 249 ) ( 250 and up )
Price :( $5.00 per unit ) $4.50 per unit $4.10 per unit
What should the order quantity be in order to minimize the average annual cost? Also, show the minimal average annual cost.