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Use the following information to determine the lost sale cost for supplier A: Table 1 Order lot size 3 0 0 Annual Requirements 3 4

Use the following information to determine the lost sale cost for supplier A:
Table 1
Order lot size 300
Annual Requirements 3484 units
Back order cost $15 per unit
Late delivery of the component results in 50% lost sales and 50% back orders of finished goods.
Profit margin 20%
Price of finished golf cart $5000
Table 2
Unit Price Supplier A Supplier B
1 to 999 units/order $50 $52
1000 to 2,999 units/order $48 $50
Supplier Delivery Rating (late)1%2%

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