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Superlot 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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Superlot 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 month. A supplier quotes a price of $700 per spark plug The supplier also offers a special discount option of all 204,000 spark plugs are purchased at the start of the year, a discount of 4% of the 5700 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 teicaments Begin by calculating the relevant costs for each alternative, then calculate the difference between the two alternatives Alternative A: Alternative B: Purchase 204,000 Purchase 17.000 spark plugs at spark plugs at beginning beginning of year of each month Annual purchase order costs 200 Annual purchase costs Annual interest income that could be warned investment in inventory were invested Relevant costs > Enter any number in the eart helds and then chox Check

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