A manufacturing firm has been offered a component part it uses according to the following discount pricing schedule provided by the supplier:

QTY……………	PRICE/UNIT
1 – 199…………	$65
200 –599………	$59
600 +…………...	$56

The company uses 700 of the components annually. Annual carrying cost is $14 per unit, and ordering cost is $275.

a) Determine the amount the company should order.

b) If the supplier was willing to negotiate, and the company preferred to take delivery of its annual supply of the part in a single order, at what price per unit would that become economical?