The Interstate Carpet Discount Store has annual demand of 10,000 yards of Super Shag carpet. The annual

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The Interstate Carpet Discount Store has annual demand of 10,000 yards of Super Shag carpet. The annual carrying cost for a yard of this carpet is $1.25, and the ordering cost is $300. The carpet manufacturer normally charges the store $8 per yard for the carpet. However, the manufacturer has offered a discount price of $6.50 per yard if the store will order 5000 yards. How much should the store order, and what will be the total annual inventory cost for that order quantity?

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