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Amount of inventory cost for the order quantity

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The I-75 Carpet Discount store has an annual demand of 10,000 yards of Super Shag carpet. The annual carrying cost for a yard of this carpet is $0.75, and the ordering cost is $150. The carpet manufacturer normally charges the store $8 per yard for the carpet; however, the manufacturer has offered a discount price of $6.50 per yard if the store will order 5000 yards. How much should the store order, and what will be the total amount inventory cost for the order quantity?

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The solution discusses the amount of inventory cost for the order quantity.

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In this we have to compare the Inventory costs of EOQ order and if the order size is 5000 yards.
I. We will use first of all EOQ is Economic Order quantity to find the optimal order size.
EOQ= 2 Square Root (PA/C)
Here P = Ordering cost per order
A= Annual ...

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