AFM 481 - Assigned Problems and Solutions - Chapter 11 11-16 Inventory decision, opportunity costs Lawnox, a manufacturer of lawn mowers, predicts that it will purchase 240,000 spark plugs next year. Lawno> each month. A supplier quotes a price of $9 per spark plug. The supplier also offers a special discount option: the year, a discount of 4% off the $9 price will be given. Lawnox can invest its cash at 10% per year. It costs La Required 1. What is the opportunity cost of interest forgone from purchase all 240,000 units at the start of the 2. Would this opportunity cost be recorded in the accounting systems? Why? 3. Should Lawnox purchase 240,000 units at the start of the year or 20,000 units each month? Show