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Project Mayhem, a large producer of household products, purchases a glyceride used in one of its deodorant soaps. It uses the glyceride at a fairly
Project Mayhem, a large producer of household products, purchases a glyceride used in one of its deodorant soaps. It uses the glyceride at a fairly steady rate of 41 pounds per month, and the company uses a 10% annual interest rate to compute holding costs. The chemical can be purchased from two suppliers, Angel Face and Marla Singer. Angel Face offers the following all units discount schedule. Marla Singer offers the following incremental discount schedule: $1.26 per pound for all orders less than or equal to 700 pounds, and $1.06 per pound for all incremental amounts over 700 pounds. Cost of order processing for each case is $151. What are the average annual costs associated with each supplier
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