If the Price is 5.8 Economic Order Quantity = (2*5000*70/(0.30*5.8))^(1/2) Economic Order Quantity = 634.27 = 634 At Economic Order Quantity Total Cost = 5000*5.80 + 634*1/2*30/100*5.80 + 5000/634*70 Total Cost = $ 30,103.63 if We order 1000 at a time Total Cost = 5000*5.4 + 1000*1/2*30/100*5.4 + 5000/1000*70 Total Cost = 28,160 if We order 4000 at a time Total Cost = 5000*5 + 4000*1/2*30/100*5.0 + 2*70 Total Cost = 28,140 if we order 6000 at a time Total Cost = 5000*4.6 + 6000*1/2*30%*4.6 + 1*70 Total Cost = 27,210 Hence, Order Quantity at a Time When Total Cost Is Lowest = 6000 Unit 1