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Can anyone help me answer the question(s) for each requirement mentioned above with correct answers, please? Can you all show me the step by step
Can anyone help me answer the question(s) for each requirement mentioned above with correct answers, please? Can you all show me the step by step work in order to compute the all the correct answers to each questions and/or section of each requirement, please?
E11-26 (similar to), Grass Eaters, a manufacturer of lawn mowers, predicts that it will purchase 240.000 spark plugs next year. Grass Eaters estimates that 20,000 spark plugs will be required each month. A supplier quotes a price of $8.00 per spark plug. The supplier also offers a special discount option: If all 240.000 spark plugs are purchased at the start of the year, a discount of 4% off the $8.00 price will be given. Grass Eaters can invest its cash at 10% per year. It costs Grass Eaters $250 to place each purchase order. Read the requirements. O Requirements 1. What is the opportunity cost of interest forgone from purchasing all 240,000 units at the start of the year instead of in 12 monthly purchases of 20,000 units per order? 2. Would this opportunity cost be recorded in the accounting system? Why? 3. Should Grass Eaters purchase 240,000 units at the start of the year or 20,000 units each month? Show your calculations 4. What other factors should Grass Eaters consider when making its decision? Requirement 1. What is the opportunity cost of interest forgone from purchasing all 240.000 units at the start of the year instead of in 12 monthly purchases of 20.000 units per order? Let's begin the calculation for the opportunity cost of interest forgone by first determining the formula, then calculate the opportunity cost Opportunity cost E11-26 (similar to), Grass Eaters, a manufacturer of lawn mowers, predicts that it will purchase 240.000 spark plugs next year. Grass Eaters estimates that 20,000 spark plugs will be required each month. A supplier quotes a price of $8.00 per spark plug. The supplier also offers a special discount option: If all 240.000 spark plugs are purchased at the start of the year, a discount of 4% off the $8.00 price will be given. Grass Eaters can invest its cash at 10% per year. It costs Grass Eaters $250 to place each purchase order. Read the requirements. O Requirements 1. What is the opportunity cost of interest forgone from purchasing all 240,000 units at the start of the year instead of in 12 monthly purchases of 20,000 units per order? 2. Would this opportunity cost be recorded in the accounting system? Why? 3. Should Grass Eaters purchase 240,000 units at the start of the year or 20,000 units each month? Show your calculations 4. What other factors should Grass Eaters consider when making its decision? Requirement 1. What is the opportunity cost of interest forgone from purchasing all 240.000 units at the start of the year instead of in 12 monthly purchases of 20.000 units per order? Let's begin the calculation for the opportunity cost of interest forgone by first determining the formula, then calculate the opportunity cost Opportunity costStep by Step Solution
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