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Business, 27.05.2020 22:57 nofer

Whole Nature Foods sells a gluten-free product for which the annual demand is 5000 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 offered to sell the same item for $6.00 if Whole Nature Foods buys at least 3000 boxes per order. Determine the total costs under both scenarios. Should Whole Nature Foods stick with the old supplier, or take advantage of the new quantity discount.

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