I am so confused with the steps in EOQ and the discounts. This is the problem:

Paul Peterson is the inventory manager for O%ffice Supplies, Inc., a large office supply warehouse. The annual demand for paper p%unches is 20,000 units. The ordering cost is $100 per order, $and the carrying cost is $5 per unit per year. The demand rate is 100 units per day and the production rate is 150 units per day.

1) Compute his Economic Ordering Quantity

2) Paul Peterson has found a supplier of hole punches that offers quantity discounts. The annual demand is 20,000 units, the ordering cost is $100 per order, and the carrying cost is 0.5 of the unit price. For quantities 5that vary from 0 to 1,499, the unit price is $10. The price is $7.98 for quantities that vary from 1,500 units to 2,999 units and $5.96 for quantities that vary from 3,000 to 10,000 units. Should% Paul take the quantity discount?