Question: Problem 10-21 (Algorithmic) Apply the EOQ model to the following quantity discount situation in which D = 400 units per year, Co = $44, and

Problem 10-21 (Algorithmic)

Apply the EOQ model to the following quantity discount situation in which

D = 400 units per year, Co = $44, and the annual holding cost rate is 20%.

Discount Category Order Size Discount (%) Unit Cost

1 0 to 99 0 $10.00

2 100 or more 3 $9.70

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

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