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

Q$11$ to $200$ $ $6\mathrm{.}00$ $ $2\mathrm{.}40$

Q$2201-999$ $ $5\mathrm{.}75$ $ $2\mathrm{.}30$

Q$31,000$ or more $ $5\mathrm{.}20$ $ $2\mathrm{.}08$

EOQ

Adjusted

EOQ

Q$1129\mathrm{.}10130$

Q$2131\mathrm{.}88201$

Q$3138\mathrm{.}681000$

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: $7191\mathrm{.}76)$

order cost holding cost purchase cost Total cost

Q$1153\mathrm{.}85$ $ $156\mathrm{.}00$ $ $6,000\mathrm{.}00$ $ $6,309\mathrm{.}85$

Q$2$

Q$320\mathrm{.}00$ $ $1,040\mathrm{.}00$ $ $5,200\mathrm{.}00$ $ $6,260\mathrm{.}00$

what should the order quantity be in order to minimize total cost?

Quantity level $1$

Quantity level $2$

Quantity level $3$