Seabrook Company manufactures cooling systems. Seabrook produces all the parts necessary for its product except for one electronic component, which is purchased from two local suppliers: Wood Inc. and Forest Company. Both suppliers are reliable and seldom deliver late; however, Wood sells the component for $89 per unit, whereas Forest sells the same component for $86. Seabrook purchases 80% of its components from Forest because of its lower price. The total annual demand is 4,000,000 components