The annual demand for a certain item is $1,000$ units per year. Holding cost $15$ $$0\mathrm{.}85$ per unit per year. Demand can be met by either purchasing or produc ing the item, as described by the following data:

Item cost

Procurement cost

Purchase

$ $8\mathrm{.}00$

$20\mathrm{.}00$

Produce

$ $7\mathrm{.}40$

$80\mathrm{.}00$

Production rate

$2,500$ per year

Find the minimum$-$cost procurement source and calculate the economic advantage over the alternate source. What is the minimum$-$cost procurement quantity?