Valley, Inc., uses 400 lbs. of a rare isotope per year. The isotope costs $500 per lb.,

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Valley, Inc., uses 400 lbs. of a rare isotope per year. The isotope costs $500 per lb., but the supplier is offering a quantity discount of 2% for order sizes between 30 and 79 lbs. and a 6% discount for order sizes of 80 lbs. or more. The ordering costs are $200. Carrying costs are $100 per lb. of material and are not affected by the discounts. If the purchasing manager places eight orders of 50 lbs. each, the total cost of ordering and carrying inventory, including discounts lost, will be

$1,600
$4,100
$6,600
$12,100