Home Depot is a large hardware store located in Long Beach Mall. The Everlast Binder, a special purpose glue, is one of the items that it sells. Each unit of Everlast Binder costs Home Depot $7 each. There is an annual demand for 6000 Everlast Binders. The manager has determined that the ordering cost is $20 per order and the carrying cost as a percentage of unit cost is 15%. Home Depot is now considering a new supplier of Everlast Binders. Each unit would cost only $6.65, but in order to get this discount, Home Depot would have to buy shipments of 3000 at a time. Should Home Depot use the new supplier and take this discount for quantity buying?

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