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Suppose Stanley's Office Supply purchases 5 0 , 0 0 0 boxes of pens every year. Ordering costs are $ 1 0 0 per order
Suppose Stanley's Office Supply purchases boxes of pens every year. Ordering costs are $ per order and carrying costs are $ per box. Moreover, management has determined that the EOQ is boxes. The vendor now offers a quantity discount of $ per box if the company buys pens in order sizes of boxes. Determine the beforetax benefit or loss of accepting the quantity discount. Assume the carrying cost remains at $ per box whether or not the discount is taken.
Group of answer choices
$ loss
$ benefit
$ loss
$The change would not affect profits.
$ benefit
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