Question: We order a given item using the Economic Order Quantity. Ordering cost is $100, holding cost (per-unit-per-year) is $5, and annual demand is 810 units.

We order a given item using the Economic Order Quantity. Ordering cost is $100, holding cost (per-unit-per-year) is $5, and annual demand is 810 units. Our vendor wants to talk with us about ordering in quantities of 600 and suggests that a per-unit discount would be offered. How big a discount would we need to get to make ordering in that quantity worth our while? Not greater than $0.80 Greater than 50.80 but not greater than $1.00 Greater than $1.00 but not greater than $1 20 Greater than $1.20 but not greater than $1.40 Greater than $1.40

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