Ordering and Carrying Costs; Economic Order Quantity; Quantity Discount. George Company buys 500 boxes of Item X-100 every two months. Order costs are $380 per order; carrying costs are $1 per unit and vary directly with inventory investment. Currently the company purchases the item for $5 each. LO2 Required:

(1) Determine total ordering and carrying costs under current policy.

(2) Determine the economic order quantity and the related ordering and carrying costs.

(3) What is the optimal order size if the supplier offers a 5% discount for orders of 3,000 units?