Copeland Sporting Goods is evaluating two suppliers of footballs, Big Red and Quality Sports. Pertinent information about each potential supplier follows:

REQUIRED
Calculate the relevant costs of purchasing (1) from Big Red and (2) from Quality Sports using the format of Exhibit 20-6 (p. 818). From whom should Copeland buy footballs?

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Relevant Item Big Red Quality Sports S 60.00 $7.20 0.02 $61.20 Purchase price per unit (case) Ordering costs per order Inspection costs per unit Insurance, material handling, and so on per 7.20 $0.00 $4.00 $4.50 unit per year Annual demand Average quantity of inventory held during 12,000 units 12,000 units 100 units the year Required return on investment Stockout costs per unit Stockout units per year Customer returns Customer-return costs per unit 100 units 15% 15% $ 24 $ 12 350 units 60 units 300 units 25 units $ 30 $ 30