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Superior Lawn, a manufacturer of lawn mowers, predicts that it will purchase 228,000 spark plugs next year. Superior Lawn estimates that 19,000 spark plugs will be required each month. A supplier quoles a price of $10.00 per spark plug. The supplier also offers a special discount option: If all 228,000 spark plugs are purchased at the start of the year, a discount of 2% of the $10.00 price will be given. Superior Law can inves! ils cash at 10% per year. It costs Superior Lawn $240 to place each purchase order. Read the requirements Requirement 1. What is the opportunity cost of interest forgone from purchasing all 229,000 units at the start of the year instead of in 12 monthly purchases of 19,000 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 Requirements 1. What is the opportunity cost of interest forgone from purchasing all 228,000 units at the start of the year instead of in 12 monthly purchases of 19,000 units per order? 2. Would this opportunity cost be recorded in the accounting system? Why? 3. Should Superior Lawn purchase 228,000 units at the start of the year or 19,000 units each month? Show your calculations. 4. What ather factors should Superior Lawn consider when making its decision? Print Done