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The Central Valve Company sells industrial valves and fluid control devices. One of Central's most popular valves, the Western, has an annual demand of 6,000 units. The price of each valve is $76, the inventory carrying cost is $5, and the ordering cost is $150 per order.
What is the economic order quantity?
A vendor's gives discounts to entice larger quantity purchases. The price breaks are as follows: Order Size Discount Unit Price 0 - 40 0% $30 50
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