Answer Happy

Meena Distributors has an annual demand for an airport metal detector of 1,410 units. The cost of a typical detector to Meena is $400. Carrying cost is estimated to be 20% of the unit cost, and the ordering cost is $27 per order. If Purushottama Meena, the owner, orders in quantities of 300 or more, he can get a 7% discount on the cost of the detectors. Should Meena 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 the total cost without the discount, Meena order 300 units at a time in order to qualify for the discount.