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The annual demand for an item is 1 0 0 0 units. Ordering cost is $ 2 0 per order, and inventory carrying cost is

The annual demand for an item is 1000 units. Ordering cost is $20 per order, and inventory carrying cost is 0.35% of unit price. The larger the order quantity is, the less we pay per unit. Price is determined by the following discount schedule.
Order Quantity Price per Unit ( P ) Holding cost
Q11 to 400 $ 6.00 $ 2.40
Q2401-1999 $ 5.75 $ 2.30
Q32,000 or more $ 5.20
Calculate the per unit holding cost for Quantity 3(green box).

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