A firm buys a product from a supplier using the EOQ to determine the order quantity. The supplier recently called and asked the buyer to purchase in larger lots so that the supplier’s production process can be made more efficient. Specifically, assume that the buyer will buy k times EOQ units, where k > 1. The per unit cost must be reduced to make this attractive to the buyer. What is the fractional discount at which the buyer will be indifferent between the old EOQ at the old price and buying k EOQ at the new price?