Leonard Inc. outsources much of its textbook creation to two well known publishers: Wearson and Piley. Wearson is older company with a good reputation, while Piley is a newer company with cheaper prices. Given the difference in reputation, 15% of the motherboards will be inspected if they are purchased from Wearson, but 25% of the motherboards will be inspected if they are purchased from Piley. The following data refers to costs associated with Wearson and Piley. "Any resemblance to real life organizations is purely coincidental Number of orders per year Annual motherboards demanded Price per motherboard Ordering cost per order Inspection cost per unit Average inventory level Expected number of stockouts Stockout cost (cost of rush order) per stockout Units returned by customers for replacing motherboards Cost of replacing each motherboard Required annual return on investment Other carrying cost per unit per year of inspections Wearson Piley 50 50 11,000 11,000 $99 $91 $16 $9 $6 S6 225 225 180 56 $9 50 500 $25 $25 10% 10% $3:25 53.25 SOO REQUIRED: a) What is the relevant cost of purchasing from Wearson and Piley? b) From a financial standpoint how much money can be saved? c) From a non-financial standpoint which publisher should Leonard Inc choose