A product with independent demand has a unit cost of $50. The order cost is $41 per order. The annual inventory holding cost is 15% of the item cost per year.

A product with independent demand has a unit cost of $50. The order cost is $41 per order. The annual inventory holding cost is 15% of the item cost per year. The average annual demand is 75,000 units. The supplier has offered to charge only $49 per item if they order at least 2,000 units at a time. Should they take the price discount or not? Show