Lex Icon is a manager at a local store that sells computers. He needs to decide how many computers to order based on the quantity discount schedule below. Annual demand is 2500 computers, annual inventory carrying cost as a percent of unit cost is 30% (due to problems with obsolescence), and ordering costs are $25 per order.
Quantity Price per Unit ($)
1-25 units: $725.00
26-50 units: $695.00
51+ units: $690.00
What is Total Annual Inventory Cost (TAIC) at the $695 price?