Step 1 :To answer this question, we need to calculate the total cost without the discount and the total cost with the discount. 1. Total cost without the discount: This can be calculated by multiplying the demand (D) by the selling price (S). So, Total cost without discount = D * S = 5,760 units * $25/unit = $144,000. 2. Total cost with the discount: This can be calculated by multiplying the demand (D) by the discounted price. So, Total cost with discount = D * Discount price = 5,760 units * $3.75/unit = $21,600. Comparing the two costs, the total cost with the discount ($21,600) is significantly less than the total cost without the discount ($144,000). Therefore, the quantity discount should be taken.