We need 1,000 electric drills per year. The ordering cost for these is $100 per order and the carrying cost is assumed to be 40% of the per unit cost. In orders of less than 160, drills cost $60; for orders of 160 or more, the cost drops to $55 per unit.

What is the total inventory cost if we purchase in EOQ lot sizes without the discount

What is the total inventory cost if we purchase in lot sizes of 160 units