In all the following three problems please round to two decimal places 2. R&N Investment Corp. has an annual demand of 1,500, ordering costs of $15/order, and inventory carrying costs of 25% of item price. Price is established by the following quantity discount schedule. What should the order quantity be in order to minimize the total annual cost? When we use the quantity discount model, what are the two basics elements to take into consideration? Why? Quantity Price 1 to 499 $15.00 per unit 500 to 999 $14.50 per unit 1,000 to 1,499 $14.00 per unit 1,500 and up $13.75 per unit