A company purchases a raw material from an outside supplier at a cost of £7 per unit. The total annual demand for this product is 9000 units. The holding cost is £4 per unit and the ordering cost is

£5 per order. A quantity discount of 3% of the purchase price is available for orders in excess of 1000 units. Should the company order in batches of 1000 units and take advantage of quantity discounts?