Suppose that for problem 1 in the chapter, the Always Fresh Grocery Store is offered a discount by its supplier if more than 50 cases of tea are ordered at one time. The unit item costs are $80 per case for 0 to 49 cases and $76 per case for 50 cases or more. This price of $76 applies to the entire order.
a. Should the grocery store take the discount offer?
b. What discount is required for the store to be in different between taking the discount and ordering the EOQ?