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A store estimates their holding costs at 2 5 % of purchase price ( COGS ) and incurs a fixed cost of $ 5 0

A store estimates their holding costs at 25% of purchase price (COGS) and incurs a fixed cost of $50 for each order. Demand for an item is 1,600 units per year. A supplier offers a price of $16.00 each for quantities of 250 or fewer and a price of $15.80 for quantities over 250 units.
What is the difference in annual procurement (purchase) costs between the regular and discount?

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