Numerical Question $2(15$ min$)$

$$ A company wants to determine the economic order quantity and they have following price discounts $($price breaks$)$ options.

Quantity range Cost $($C$)$

$0$ to less than $8,000$ $$2\mathrm{.}5$ per unit

$8,000$ to less than $26,000$ $$2\mathrm{.}2$ per unit

$26,000$ or more $$2\mathrm{.}0$ per unit

$$ Additional data:

$$ annual demand, D $=200,000$ units

$$ Ordering cost, S $=$ $$300$ per order

$$ Holding cost, H $=15\%$ of the unit cost $($per unit per year$)$

$$ Determine the economic order quantity and total annual cost