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 EOQ. Which of the statements below is correct?

The EOQ is approximately $98$ units which results in a per unit price of $$8\mathrm{.}80.$ No further analysis is needed to determine the best course of action to take.

The EOQ is approximately $98$ units. If we go ahead and pay $$9\mathrm{.}00$ per unit, no further analysis is needed.

No answer text provided.

The EOQ is approximately $98$ units which results in a per unit price of $$8\mathrm{.}80.$ Further analysis is needed to determine the best course of action to take.