A Supplier has the following price schedule:

- For orders of less than 4000, the company charges $0.12 per unit; for orders of 4000 or more, it charges $0.10 per unit.

- Consider example, but assume incremental discounts. That is, the unit cost $0.15 each of quantities of less than 4000; for quantities of 4000 or over the first 2000 cost $0.12 each, and the remaining amount cost $0.10 each.

Assume that the company considering what sending order to place with supplier uses units at a fairly constant rate of 3500 per year. The accounting department estimates that the fixed cost of placing an order is $30, and holding costs are based on 11percent annual interest rate.

Show graphical description of the two different schedules and say which supplier is better than the other?