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Superior Lawn, a manufacturer of lawn mowers, predicts that it will purchase 204,000 spark plugs next year Superior Lawn estimates that 17.000 spark plugs will

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Superior Lawn, a manufacturer of lawn mowers, predicts that it will purchase 204,000 spark plugs next year Superior Lawn estimates that 17.000 spark plugs will be required each month. A supplier quotes a price of $7.00 per spark plug The supplier also offers a special discount option: If all 204,000 spark plugs are purchased at the start of the year, a discount of 4% off the $7.00 price will be given. Superior Lawn can investits cash at 10% per year It costs Superior Lawn $200 to place each purchase order Read the requirements 0 Requirement 1. What is the opportunity cost of interest forgone from purchasing all 204,000 units at the start of the year instead of in 12 monthly purchases of 17.000 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 Units purchased per month Full price per unit Opportunity cost Current Costs in 2020 Expected Costs in 2021 $ 165 $ 170 45 35 Variable manufacturing costs Direct material cost per CMCB Direct manufacturing labor cost per CMCB Variable manufacturing cost per batch for setups, materials handling, and quality control Fixed manufacturing cost Fixed manufacturing overhead costs that can be avoided if CMCBs are not made Fixed manufacturing overhead costs of plant depreciation, innan ankadeinintention that hadded 1,500 2,000 810,000 220,000

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