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Best Trim, a manufacturer of lawn mowers, predicts that it will purchase 264,000 spark plugs next year. Best Trim estimates that 22,000 spark plugs will be required each month. A supplier quotes a price of $9 per spark plug. The supplier also offers a special discount option: If all 264,000 spark plugs are purchased at the start of the year, a discount of 4% off the $9 price will be given. Best Trim can invest its cash at 10% per year. It costs Best Trim $260 to place each purchase order. Required 1. What is the opportunity cost of interest forgone from purchasing all 264,000 units at the start of the year instead of in 12 monthly purchases of 22,000 units per order? 2. Would this opportunity cost be recorded in the accounting system? Why? 3. Should Best Trim purchase 264,000 units at the start of the year or 22,000 units each month? Show your calculations. Requirement 1. What is the opportunity cost of interest forgone from purchasing all 264,000 units at the start of the year instead of in 12 monthly purchases of 22,000 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 Difference in annual purchase costs Difference in average investment t be recorded in the accounting system? Why? Units purchased per month ed in the accounting system, due to transaction being recorded in the accounting system. Units purchased per year Requirement 3. Should best Inm purchase 264,000 units at the start of the year or 22,000 units each month? Show your calculations. Begin by calculating the relevant costs for each alternative. Then calculate the difference between the two alternatives.Best Trim, a manufacturer of lawn mowers, predicts that it will purchase 264,000 spark plugs next year. Best Trim estimates that 22,000 spark plugs will be required each month. A supplier quotes a price of $9 per spark plug. The supplier also offers a special discount option: If all 264,000 spark plugs are purchased at the start of the year, a discount of 4% off the $9 price will be given. Best Trim can invest its cash at 10% per year. It costs Best Trim $260 to place each purchase order. Required 1. What is the opportunity cost of interest forgone from purchasing all 264,000 units at the start of the year instead of in 12 monthly purchases of 22,000 units per order? 2. Would this opportunity cost be recorded in the accounting system? Why? 3. Should Best Trim purchase 264,000 units at the start of the year or 22,000 units each month? Show your calculations. Requirement 1. What is the opportunity cost of interest forgone from purchasing all 264,000 units at the start of the year instead of in 12 monthly purchases of 22,000 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 X Discount percentage Requirement 2. Would this opportunity cost Discounted price per unit /stem? Why? The opportunity cost be recorded Full price per unit to transaction being recorded in the accounting system. Investment percentage Requirement 3. Should Best Trim purchase 264,vvu units at the start of the year or 22,000 units each month? Show your calculations.Requirement 2. Would this opportunity cost be recorded in the accounting system? Why? The opportunity cost be recorded in the accounting system, due to transaction being recorded in the accounting system. Requirement 3. Should Best Trim purchase 264,000 units at the start of the year or 22,000 units each month? Show your calculations. Begin by calculating the relevant costs for each alternative. Then calculate the difference between the two alternatives. Purchase 264,000 Purchase 22,000 spark plugs at spark plugs at beginning beginning of year of each month Difference Annual purchase-order costs Annual purchase costs Annual interest income that could be earned if investment in inventory were invested Relevant costs The difference column indicates that purchasing 22,000 spark plugs at the beginning of each month is relative to purchasing 264,000 spark plugs at the beginning of the year. Choose from any list or enter any number in the input fields and then continue to the next quest not preferred preferred