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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 40% of unit price. The larger the order quantity is, the less we pay per unit. Price is determined by the following discount schedule. We use least total cost to determine what should the order quantity be to order.
Order Quantity Price per Unit
( P ) Holding cost
Q11 to 200 $ 6.00 $ 2.40
Q2201-999 $ 5.75 $ 2.30
Q31,000 or more $ 5.20 $ 2.08
EOQ
Adjusted
EOQ
Q1129.10130
Q2131.88201
Q3138.681000
For this question, calculate the order, holding, purchase and total costs for Quantity level 2 and ONLY submit the Total Cost with 2 decimal points. No need for dollar sign or comma. (Example: 7191.76)
order cost holding cost purchase cost Total cost
Q1153.85 $ 156.00 $ 6,000.00 $ 6,309.85
Q2
Q320.00 $ 1,040.00 $ 5,200.00 $ 6,260.00

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