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A manufacturer of exercise equipment purchases pulleys from a supplier who lists these prices: less than 1,000, $5 each; 1,000 to 3,999, $4.95 each; 4,000 to 5,999, $4.90 each; and 6,000 or more, $4.85 each. Ordering cost is $50 per order, annual holding cost is 20 percent of purchase cost, and annual usage is 4,900 pulleys. Determine the order quantity that will minimize total cost.
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