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Requirement 1 . What is the opportunity cost of interest forgone from purchasing all 228,000 units at the start of the year instead of in
Requirement 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? Let's begin the calculation for the opportunity cost of interest forgone by first determining the formula, then calculate the opportunity cost. 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 Global Lawn purchase 228,000 units at the start of the year or 19,000 units each month? Show your calculations. Begin by calculating the relevant costs for each alternative, then calculate the difference between the two alternatives. 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 Global Lawn purchase 228,000 units at the start of the year or 19,000 units each month? Show your calculations. 4. What other factors should Global Lawn consider when making its decision
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