A product with independent demand has a unit cost of $50. The order cost is $41 per

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A product with independent demand has a unit cost of $50. The order cost is $41 per order. The annual inventory holding cost is 15% of the item cost per year. The average annual demand is 75,000 units. The supplier has offered to charge only

$49 per item if they order at least 2,000 units at a time. Should they take the price discount or not? Show.

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