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Annakay Ferguson sells beauty supplies. Her annual demand for a particular skin lotion is 7 , 0 0 0 units. The cost of placing an

Annakay Ferguson sells beauty supplies. Her annual demand for a particular skin lotion is 7,000 units. The cost of placing an order is $10, while the holding cost per unit per year is 10 percent of the cost. This item currently costs $2.50 if the order quantity is less than 1500. For orders of 1501 units or more, the cost falls to $2.45. To minimize total cost, how many units should Vicky order each time she places an order? What is the minimum total cost? (6+6 marks)

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