Agrichem manufactures Insect$-$Be$-$Gone. Each bag of the product contains $60$ pounds of direct materials. Twenty$-$five percent of the materials evaporate during manufacturing. The budget allows the direct materials to be purchased at $$2\mathrm{.}50$ per pound $($gross cost$)$ under terms of $2/10,$ n$/30.$ The company$$s stated policy is to take all available cash discounts.