Suppose now that the supplier in the previous problem offers a 1% discount on orders of 1,800 units or more. Should MEC accept the supplier's offer?
Previous problem data
Micro-Encapsulator Corp. (MEC) expects to sell 7,200 miniature home encapsulators this year. The cost of placing an order from its supplier is $250. Each unit costs $50 and carrying costs are 20% of the purchase price.