A company uses an item of inventory as follows.
Purchase price??????????????????????????? $25 per unit
Annual demand?????????????????????????? 1,800 units
Ordering cost????????????????????????????? ?$32
Annual holding cost??????????????????? $4.50 per unit
EOQ??????????????????????????????????????????? 160 units
What is the minimum total cost assuming a discount of 2% applies to the purchase price and to holding costs on orders of 300 and over?