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Copeland Sporting Goods is evaluating two suppliers of fo otballs: Big Red and Quality Sports. Pertinent information about each poten tia I supplier follows: Relevant
Copeland Sporting Goods is evaluating two suppliers of fo otballs: Big Red and Quality Sports. Pertinent information about each poten tia I supplier follows: Relevant Item Purchase price per unit (case) Ordering costs per ord er Inspection costs per unit Insurance, material handling, and so on per unit per year Annual demand Average quantity of inventory held during the year Required return on investment Stockout costs per unit Stockout units per year Customer returns Customer-return costs per unit Required Big Red $ 60.00 $ 7.20 $ 0.02 $ 4.00 12,000 units 100 units 15% s 24 350 units 300 units $ 30 Quality Sports $ 61.20 $ 7.20 $ 0.00 $ 4.50 12,000 units 100 units 15% s 12 60 units 25 units $ 30 Calculate the relevant costs of purchasing (1) from Big Red and (2) from Qu ality Sports using the format of Exhibit 19-7. From whom should Copeland buy footballs
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