A particular raw material is available to a company at three different prices, depending on the size of the order:

Less than 100 pounds 100 pounds to 1,000 pounds More than 1,000 pounds

$20 per pound

$19 per pound

$18 per pound The cost to place an order is $40. Annual demand is 3,000 units. Holding (or carrying) cost is 25 percent of the material price.

What is the economic order quantity to buy each time?