Ericson & Jade Electronics are manufactures of Music instruments made from brass. The purchase manager has estimated that 600Kgs of brass is required every year. The current order size is 50Kg made every month.

It takes $10 to place one order and carrying cost per unit per anum is about $2. The supplier has made the following offer to the purchase manager:

Order Size	Price per Kg ($)
Up-to 50	11
51 60	10
61 80	8.5
81 100	8
100 200	7
200 500	6.5

The purchase manager has suggested that the company should purchase full 600Kg of brass to avail the discount.

REQUIRED: Perform the following actions:

i. Calculate the EOQ.

ii. Analyze and evaluate the argument of purchase manager by showing necessary calculations and decide upon the order size (50Kg, EOQ, 200Kg or 600Kg).