A company has been approached by their supplier who would be willing to offer a discount of $5\%$ on orders

over $500$ units.

Information regarding current inventory costs is as follows:

Holding cost per unit per annum $=10\%$ of purchase price

Ordering costs $=$ $$2$ per order

Annual demand $=15,000$ units

Purchase price $=$ $$15$ per unit

Current EOQ quantity $=200$ units

Identify which option is better for the company.