Given the following information concerning quantity discounts:

Order between $1$ and $29$ units for a price per unit of $$9\mathrm{.}00$

Order between $30$ and $99$ units for a price per unit of $$8\mathrm{.}80$

Order $100$ units or more for a price per unit of $$8\mathrm{.}50$

Annual demand $=1200$ units

Ordering costs $=$ $$10$ per order

Carrying costs $=$ $$2\mathrm{.}50$ per unit per year

Calculate the total inventory cost at the EOQ as well as the total inventory cost at the lowest possible quantity to get the per unit quantity discount. Be sure to include the annual costs of purchasing the units themselves since it now varies with order quantity. Which of the statements below describe the best course of action to take?

It is better to order the minimum number of units necessary to obtain the quantity discount

We are indifferent as to whether to order at the EOQ or order enough to obtain the quantity discount