Question: Problem 10-21 (Algorithmic) Apply the EOQ model to the following quantity discount situation in which D = 450units per year, C o= $42, and the

Problem 10-21 (Algorithmic)

Apply the EOQ model to the following quantity discount situation in whichD= 450units per year,Co= $42, and the annual holding cost rate is20%.

Discount Category Order Size Discount(%) Unit Cost

1 0 to 99 0 $12.00

2 100 or more 3 $11.64

What order quantity do you recommend? If required, round your answer to the nearest whole number.

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