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Wang Distributors has an annual demand for an airport metal detector of 1,360 units. The cost of a typical detector to Wang is $400. Carrying cost is estimated to be 19% of the unit cost, and the ordering cost is $27 per order. If Ping Wang, the owner, orders in quantities of 300 or more, he can get a 33% discount on the cost of the detectors. Should Wang take the quantity discount?
What is the EOQ without the discount?
EOQ = ______ units (round your response to one decimal place).
Since the total cost with the discount is (greater than/less than) the total cost without the discount, Wang (should/should not) order 300 units at a time in order to qualify for the discount.
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