Q1.Suppose Big Box Office Supply (BBOS) purchases 100,000 office chairs every year.Ordering costs are $95.00 per order and carrying costs are $3.75 per chair. However, Big Box Office Supply (BBOS) is able to negotiate a reduction in the carrying costs to $3.50 per chair, but BBOS's chair supplier offers a quantity discount of $0.25 per chair if BBOS orders 5,000 chairs at a time rather than the EOQ.Determine the before-tax benefit or loss of accepting the quantity discount.(Assume the carrying cost remains at $3.50 per chair whether or not the discount is taken.)