Q $3($a$)$

$[10$ Marks$]$

A retail store dealing in computer hardware imports an enterprise model solid$-$state

drive $($SSD$)$ at a fixed price of $1,000$ per unit from the sole distributer of the SSD$.$ The

store has received an offer of a $15\%$ discount on orders of $300$ or more units. The

estimated sales for the next $12$ months are $600$ units, the cost incurred per order is

$1000$ and the average holding cost per unit per annum is estimated to be $120$ per

unit. The full unit purchase price is likely to remain at $1,000$ per unit during the year.

Determine whether the retail store should increase their order size to avail of the

discount offered.