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The purchase price per unit is $220, the annual carrying costs are 20% of the value of inventory, the fixed costs per order is $4,400,
The purchase price per unit is $220, the annual carrying costs are 20% of the value of inventory, the fixed costs per order is $4,400, and the annual usage in units is 20,000. We want to apply EOQ model to manage the inventory. The company has the option to receive a discount of 1% on orders of X or more. What is the maximum value of X so that the company will take the discount?
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