W Co is a retailer of barrels. The company has an annual demand of 30,000 barrels. The barrels cost $2 each. Fresh supplies can be obtained immediately, with ordering costs amounting to $200 per order. The annual cost of holding one barrel in stock is estimated to be $1.20. A 2% discount is available on orders of at least 5,000 barrels and a 2.5% discount is available if the order quantity is 7,500 barrels or above.

A) Calculate the EOQ ignoring the discount.

B) Determine whether EOQ would change once the discount is considered