A Problem About Inventory Model?

A company has a steady annual demand for a product of 60,000 units. The company buys the product form a local supplier at a cost of P6 per unit. The cost of ordering and receiving delivery of an order is P10 per lot. The carrying cost expressed as a percentage of stock values is 20%. The supplier is offering a 5% discount on orders of 20,000 units or more. Is the discount worth taking?

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