Rollins Company uses 1,620 tankloads a year of a specific input material. The tankloads are delivered by rail to a siding on the company property. The supplier is offering a special discount for buyers of large quantities. The schedule is as follows:

Ordering costs amount to $500, and carrying costs are $450 per tankload and are not affected by the discounts. Each tankload costs $1,500.

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Quantity Ordered (tankloads) 1-19.... 20-79.... 80-149 150 and over Discount -0- 2% 5 6