University Computers Inc wants to get rid of its excess laptops, so it is selling its laptops at a price of $1500 per laptop. When a local bookstore approached to purchase in bulk, University Computers Inc offered discounted prices. The quantity discount pricing offered is shown below. Given the discounted prices, the bookstore wants to determine if it should take advantage of this discount or order the basic EOQ order size.

Quantity Discount:

Option	Quantity	Price
1	1 49	$1,500
2	50 89	$ 1,000
3	90 and above	$ 800

Annual Carrying Cost: 2% of purchase price

Ordering Cost: $250

Annual Demand: 220

1.Determine the Economic Order Quantity

2.Which order quantity will minimize the total cost?

3. How many times does the bookstore have to order the computers per year at the ordering quantity for the minimum total cost?