Question: P1 Consider the incremental discount model. Under this model, the entire order does not get the lower price; only the additional amount over a price

P1 Consider the incremental discount model. Under

P1 Consider the incremental discount model. Under this model, the entire order does not get the lower price; only the additional amount over a price range gets the lower cost 4000 3500 3000 $3 2500 Cost f (x) 2000 $5 1500 Cost 1000 500 $7 0 0 100 200 600 700 800 300 400 500 Order quantity (x) Under this model, the first 200 units are always charged at $7/unit, the next 300 units are charged at a lower price of $5/unit, and only the amount over 500 is charged at $3/unit. For example, if the order quantity is 300 units, then the cost is given by: f(x) = 200($7)+100($5) = $1900 Model this as a integer linear program

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