Whole nature foods sells a gluten-free product

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Whole Nature Foods sells a gluten-free product for which the 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 $25.00. A new supplier has offered to sell the same item for $6.00 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? Please show your work.

Reference no: EM131283542

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