The annual demand for an item is $10,000$ units. The cost to process an order is $$75$ and the annual inventory holding cost is $20\%$ of item cost.

Quantity Price

$1-9$ $$2\mathrm{.}95$ per unit

$10-999$ $$2\mathrm{.}50$ per unit

$1,000-4,999$ $$2\mathrm{.}30$ per unit

$5,000$ or more $$1\mathrm{.}85$ per unit