Movie Time is a distributor of DVDs. Video Mart is a local retail outlet which sells blank and recorded DVDs. Video Mart purchases DVDs from Movie Time at$5.00 each; the units are shipped in packages of 25. Movie Time pays all incomingfreight, and Video Mart does not inspect the DVDs due to MovieTime's reputation for high quality. Annual demand is104,000 DVDs at a rate of2,000 units per week. Video Mart earns15% on its cash investments. The purchase order lead time is one week. The following cost data areavailable:

Relevant ordering costs per purchase order: $94.50

Carrying costs per package peryear: $3.50

Relevantinsurance, materialshandling, breakage,etc., per year

What is the economic orderquantity?