Refer to the information provided for Roybow Corporation in Problem 15–19. Suppose that Roybow’s supplier decides to offer a 2 percent cash discount if products are ordered in increments of 1.000. How many mowers should Roybow order each time an order is placed to minimize total inventory costs?

Data from 15-19

Roybow Corporation sells lawn mowers that cost $160 each to purchase and prepare for sale. Annual sales are 5,000 mowers, carrying costs are 20 percent of inventory costs, and Roybow incurs a cost of $32 each time an order is placed.