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The BNC Company is planning its ordering policy for Product SKU703 which has a constant and known demand rate

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The BNC Company is planning its ordering policy for Product SKU703 which has a constant and known demand rate. Annual demand is 12,000 units per year, the ordering cost is $375 per order, the unit cost is $10 and the inventory carrying cost is at a rate of 10% per year. 
i)What is the optimal order quantity and the total annual cost associated with the optimal order quantity?                                                                    
ii)A few days later your supplier comes by and tells you that they have offered to reduce the unit cost from $10 to $9 if the company orders in lots of 5000 units or more. 
What is your recommendation on the order quantity?          
 iii) What is the minimum discount that will make you recommend that the company order in lots of 5000 or more?