Barter Corporation has been buying Product \(\mathrm{A}\) in lots of 1,200 units which represents a four months' supply. The cost per unit is \(\$ 100\); the order cost is \(\$ 200\) per order; and the annual inventory carrying cost for one unit is \(\$ 25\). Assume that the units will be required evenly throughout the year.

{Required:}

What is the economic order quantity?