Question
Happy Pet, Inc., is a large pet store located in Long Beach Mall. Although the store specializes in dogs, it also sells fish, turtle, and
Happy Pet, Inc., is a large pet store located in Long Beach Mall. Although the store specializes in dogs, it also sells fish, turtle, and bird supplies. The Everlast Leader, a leather lead for dogs, costs Happy Pet $5 each. There is an annual demand for 4,000 Everlast Leaders. The manager, Stephan Wagner, has determined that the ordering cost is $35 per order and the carrying cost, as a percentage of unit cost, is 11%. Happy Pet is now considering a new supplier of Everlast Leaders. Each lead would cost only $4.75, but, in order to get this discount, Happy Pet would have to buy shipments of 2,000 at a time. Should Happy Pet use the new supplier and take this discount for quantity buying?
1)-What is the total cost with the discount?
2)-The total cost without the discount is ?
3)-Should Happy Pet use the new supplier and take this discount for quantity buying?
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