Meena Distributors has an annual demand for an airport metal detector of

1400

units. The cost of a typical detector to Meena is

$400.00.

Carrying cost is estimated to be

20%

of the unit cost, and the ordering cost is

$25.00

per order. If Purushottama

Meena,

the owner, orders in quantities of

300

or more, he can get a

5%

discount on the cost of the detectors. Should Meena take the quantity discount?