A new supplier has offeted to sell the same item for $6.00 1, if Whole Nature Foods buys at least 3,000 boxes per order. Should the firm stick with the old supplier, or take advantage of the new...

A new supplier has offeted to sell the same item for $6.00 1, if Whole Nature Foods buys at least 3,000 boxes per order. Should the firm stick with the old supplier, or take advantage of the new quantity discount?

Whole Nature Foods sells a gluten-free product for which the 1-..; annual demand is 5,000 boxes. At the moment, it is paying $6.40 for each box; carrying cost is 25% of the unit cost; ordering costs are $25. A new supplier has offeted to sell the same item for $6.00 1, if Whole Nature Foods buys at least 3,000 boxes per order. Should the firm stick with the old supplier, or take advantage of the new quantity discount?

A new supplier has offeted to sell the same item for $6.00 1, if Whole Nature Foods buys at least 3,000 boxes per order. Should the firm stick with the old supplier, or take advantage of the new quantity discount?