Happy Pet, Inc., is a large pet store located in Long Beach Mall. Although the store specializes in dogs, it also sells fish, turtle, and bird supplies. The Everlast Leader, a leather lead for dogs, costs Happy Pet $11 each. There is an annual demand for 4,000 Everlast Leaders. The manager, Stephan Wagner, has determined that the ordering cost is $40 per order and the carrying cost, as a percentage of unit cost, is 11%. Happy Pet is now considering a new supplier of Everlast Leaders. Each lead would cost only $10.45, but, in order to get this discount, Happy Pet would have to buy shipments of 3,000 at a time. Should Happy Pet use the new supplier and take this discount for quantity buying? The total cost without the discount is $ (round your response to the nearest whole number). The total cost with the discount is s (round your response to the nearest whole number). Should Happy Pet use the new supplier and take this discount for quantity buying? O No • Yes

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Author:Amos Gilat
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Happy Pet, Inc., is a large pet store located in Long Beach Mall. Although the store specializes in dogs, it also sells fish, turtle, and bird supplies. The Everlast Leader,
a leather lead for dogs, costs Happy Pet $11 each. There is an annual demand for 4,000 Everlast Leaders. The manager, Stephan Wagner, has determined that the
ordering cost is $40 per order and the carrying cost, as a percentage of unit cost, is 11%.
Happy Pet is now considering a new supplier of Everlast Leaders. Each lead would cost only $10.45, but, in order to get this discount, Happy Pet would have to buy
shipments of 3,000 at a time. Should Happy Pet use the new supplier and take this discount for quantity buying?
The total cost without the discount is $ (round your response to the nearest whole number)
The total cost with the discount is s (round your response to the nearest whole number).
Should Happy Pet use the new supplier and take this discount for quantity buying?
O No
• Yes
Transcribed Image Text:Happy Pet, Inc., is a large pet store located in Long Beach Mall. Although the store specializes in dogs, it also sells fish, turtle, and bird supplies. The Everlast Leader, a leather lead for dogs, costs Happy Pet $11 each. There is an annual demand for 4,000 Everlast Leaders. The manager, Stephan Wagner, has determined that the ordering cost is $40 per order and the carrying cost, as a percentage of unit cost, is 11%. Happy Pet is now considering a new supplier of Everlast Leaders. Each lead would cost only $10.45, but, in order to get this discount, Happy Pet would have to buy shipments of 3,000 at a time. Should Happy Pet use the new supplier and take this discount for quantity buying? The total cost without the discount is $ (round your response to the nearest whole number) The total cost with the discount is s (round your response to the nearest whole number). Should Happy Pet use the new supplier and take this discount for quantity buying? O No • Yes
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