Product X has an annual demand of 5000 units. The ordering cost is $30 per order and the inventory annual holding cost rate is $2.50 per unit. Price is established by the following quantity discount schedule. Quantity 1 to 499 500 and up Price $5.00 per unit $4.50 per unit Calculate the total cost for each range and determine the most economic quantity and price to be ordered each time. TC = H + s + PD Where Q = number of pieces of inventory per order D = annual demand in units of inventory S = set up cost for each order H = holding cost per unit per year TC = total cost Product X has an annual demand of 5000 units. The ordering cost is $30 per order and the inventory annual holding cost rate is $2.50 per unit. Price is established by the following quantity discount schedule. Quantity 1 to 499 500 and up Price $5.00 per unit $4.50 per unit Calculate the total cost for each range and determine the most economic quantity and price to be ordered each time. TC = H + s + PD Where Q = number of pieces of inventory per order D = annual demand in units of inventory S = set up cost for each order H = holding cost per unit per year TC = total cost