A particular raw material is available to a company at
A particular raw material is available to a company at three different prices, depending on the size of the order:
Less than 100 pounds ...............$ 20 per pound
100 pounds to 1,000 pounds............$ 19 per pound
More than 1,000 pounds.............$ 18 per pound

The cost to place an order is $ 40. Annual demand is 3,000 units. Holding (or carrying) cost is 25 percent of the material price.
What is the economic order quantity to buy each time?

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