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Your company makes snow blowers and this winter they have been selling very well. You are evaluating a quote from a supplier for engines that

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Your company makes snow blowers and this winter they have been selling very well. You are evaluating a quote from a supplier for engines that power your snow blowers. The quote is as follows: Supplier 1 Price $90 Terms 2% 10 Net 45 Distance 200 Minimum order quantity 1500 Weight 20 lbs Assume the following: . Annual volume for engines is expected to be 90.000 units The price is constant regardless of volume or order quantity Inventory holding rate is 25% Working capital costs are 12% Your order quantity will always equal the minimum order quantity for the supplier Your freight rate is $1.75 per ton mile for a full truckload (40,000 lbs) and $2.00 for a less-than-truckload shipment There are 360 days in a year. There are 2000 lbs/ton Order costs, tooling costs. quality costs, late-delivery costs should be ignored. Round all answers to the nearest whole number Your company makes snow blowers and this winter they have been selling very well. You are evaluating a quote from a supplier for engines that power your snow blowers. The quote is as follows: Supplier 1 Price $90 Terms 2% 10 Net 45 Distance 200 Minimum order quantity 1500 Weight 20 lbs Assume the following: . Annual volume for engines is expected to be 90.000 units The price is constant regardless of volume or order quantity Inventory holding rate is 25% Working capital costs are 12% Your order quantity will always equal the minimum order quantity for the supplier Your freight rate is $1.75 per ton mile for a full truckload (40,000 lbs) and $2.00 for a less-than-truckload shipment There are 360 days in a year. There are 2000 lbs/ton Order costs, tooling costs. quality costs, late-delivery costs should be ignored. Round all answers to the nearest whole number

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