Ray’s Satellite Emporium wishes to determine the best order size for its best-selling satellite dish. Ray has estimated the annual demand for this model at 10,000 units. His cost to carry one unit is $60 per year per unit, and he has estimated that each order costs $10 to place.
Using the EOQ model, how many should Ray order? Please provide the formula, at least one step of calculation, and the correct order size for full credit.