stocked items . New System old System A B A B Invoiced Value 160,000 160000 160000 160000 Margin 80000 80000 80000 BOOOO Handling Cost 2250 21000 11625 11625 Restocking Cost 6750 49500 28125 28125 Total Cost 9000 70500 39750 39750 Operating Profit 71000 9500 40250 40250 Profit margins for Kanthal are much higher for order 1 than order 2 . This is the