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A Supplier has the following price schedule: For orders of less than 900, the company charges $0.15 per unit; for orders of 900 or more, it charges $0.12 per unit. Consider example, but assume incremental discounts. That is, the unit cost $0.18 each of quantities of less than 900; for quantities of 900 or over the first 600 cost $0.15 each, and the remaining amount cost $0.12 each. Assume that the company considering what sending order to place with supplier uses units at a fairly constant rate of 1000 per year. The accounting department estimates that the fixed cost of placing an order is $8, and holding costs are based on 15 percent annual interest rate. Show graphical description of the two different schedules and say which supplier is better than the other? (10 points) A Supplier has the following price schedule: For orders of less than 900, the company charges $0.15 per unit; for orders of 900 or more, it charges $0.12 per unit. Consider example, but assume incremental discounts. That is, the unit cost $0.18 each of quantities of less than 900; for quantities of 900 or over the first 600 cost $0.15 each, and the remaining amount cost $0.12 each. Assume that the company considering what sending order to place with supplier uses units at a fairly constant rate of 1000 per year. The accounting department estimates that the fixed cost of placing an order is $8, and holding costs are based on 15 percent annual interest rate. Show graphical description of the two different schedules and say which supplier is better than the other? (10 points)

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