The following quantity discount is offered to a company that purchases 120,000 units of the product annually.
Order Quantity Price per Unit
0–1999………………….. $50
2000–3999……………… $49
4000 or more…………… $46
Each time an order is placed, the company incurs a cost of $75. If the company’s carrying charge is 25% of the price of the item, what order quantity should it use to minimize its total inventory-related costs?