Question: A material is purchased for $3 per unit. Monthly usage is 1,500 units, the ordering cost is $50 per order, and the annual carrying cost

A material is purchased for $3 per unit. Monthly usage is 1,500 units, the ordering cost is $50 per order, and the annual carrying cost is 40%.
Required:
(1) Compute the economic order quantity.
(2) Determine the proper order size if the material can be purchased at a 5% discount in lots of 2,000 units.

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