ABA Berhad supplies ABC Berhad with 2,000 reams of paper annually for its office use. Each ream of paper costs RM56 to p

[answerhappygod]

ABA Berhad supplies ABC Berhad with 2,000 reams of paperannually for its office use. Each ream of paper costs RM56 topurchase. In addition, the holding cost (per ream) per year is 0.1%of the purchase price, and the ordering cost is RM30. Anothersupplier (BBB) offers to supply the papers for RM50 each if ABCBerhad orders at least 1,500 at a time and in multiples of 100. Thecharge for placing an order is RM25. Assume an annual demand of3000 reams of paper, should the management of ABC Berhad switch tothe new supplier or continue with the current supplier? Supportyour answer with calculations.