Problem 10-21 Apply the EOQ model to the following quantity discount situation in which D = 500 units per year, Co = $40, and the annual holding cost rate
is 20%.
Discount
(%)
Discount
Category
1
2
Order Size
O to 99
100 or more
0
Unit Cost
$10.00
$9.70
3
What order quantity do you recommend? If required, round your answer to the nearest whole number.