Managers at Wagner Fabricating Company are reviewing their ordering policies regarding a

certain part that they will need in the future. Forecasted annual demand for the part is $3000$

units. Wagner operates $250$ day per year. Based on cost of capital they have concluded that the

cost of holding one item in inventory will be $22\%$ of the cost of part. Ordering cost is $$75/$order$.$

The company has a contract to purchase the part from the supplier at a cost of $$18$ per part. The

supplier has promised the following discount schedule if Wagner orders larger quantities:

Discounts are based on price per unit.

What is the order quantity if the supplier agrees to an all unit quantity discount? What is

the total cost including cost of purchasing?

What is the order quantity if the supplier agrees to marginal unit quantity discount? What

is the total cost including cost of purchasing?