I need help in this question. Please use only these formulas to calculate the answers correctly. Please do in MSWORd and paste it here

Question 2 Write down the formulas used in Quantity Discount Model and the four steps to solve for the Quantity Discount model. Quantity Discount Model Quantity discount Price reduction for larger orders offered to customers to induce them to buy in large quantities Total Cost = Carrying Cost + Ordering Cost + Purchasing Cost D -H+ S+ PD 2 where P=Unit price Quantity Discount Model Steps in analyzing a quantity discount 1. For each discount, calculate Q* 2. If Q* for a discount doesn't qualify, choose the smallest possible order size to get the discount 3. Compute the total cost for each Q* or adjusted value from Step 2 4. Select the Q* that gives the lowest total cost Quantity Discount Model Example Calculate Q* for every discount 2DS Q* = IP Q,* 2(5,000)(49) (-2)(5.00) = 700 cars/order Q2*: = 2(5,000)(49) (.2)(4.80) = 74 cars/order 1,000 adjusted Q3* = = 2(5,000)(49) (.2)(4.75) =748 cars/order 2,000 adj Lightshot I Quantity Discount Model Example Discount Unit Order Number Price Quantity 1 $5.00 700 Annual Annual Annual Product Ordering Holding Cost Cost Cost Total $25,000 $350 $350 $25,700 2 $4.80 1,000 $24,000 $245 $480 $24,725 3 $4.75 2,000 $23.750 $122.50 $950 $24,822.50 Table 12.3 Choose the price and quantity that gives the lowest total cost Buy 1,000 units at $4.80 per unit