An item $($a pharmaceutical compound$)$ has a unit cost of $$30.($A unit is a $2mg$ portion of active ingredient plus an inert ingredient, plus a glass container$).$ Total usage for the year is $5000$ units. Order costs are $$100$ per order. The item is highly perishable and it must be stored at extremely cold temperatures, which is costly$.$ Your company uses an annual carrying cost of $30\%($to account for the opportunity cost of capital, physical storage costs, and so on$).$ The supplier has given you the choice of ordering in quantities of $200,300,450$ or $600.$ If you order in lots of $600,$ the supplier will reduce your cost per unit to $$26.$

What is the order quantity that yields the lowest total acquisition cost?

Hint: It would be good to build a spreadsheet like the one demonstrated in the EOQ virtual lecture. If you build the spreadsheet and use the costs above and an order quantity of $200,$ your total cost should be $$3,400.$ If this is what you get, then you know you did your spreadsheet correctly.