The estimated demand for gold-filled lockets at Sam's Bargain Jewelry and Housewares is 3,000 lockets a year. The ordering cost is $40, and that the following price schedule applies: 1 to 299 lockets, $20 each; 300 to 1,999 lockets, $19 each; and 2000 or more lockets at $18.50 each. Carrying cost per locket on an annual basis is 25% of locket price.
The feasible EOQ is: