Answer:
The order quantity that will minimize total cost = [tex]\sqrt{2DCO/CC[/tex]
                                       = [tex]\sqrt{(2 x 4900 x $50)/(0.4 x 4.90)[/tex]
                                        =  [tex]\sqrt{$490,000/1.96}[/tex]
                                        = 500 units
Explanation:
Demand = Â 4900
ordering cost ( Co) = $50
Carrying cost = Â 40% x $4.90 Â = Â $1.96