Your company makes computers. You are evaluating a quote from a potential new keyboard supplier, call them Supplier $1.$ The quote is as follows: Supplier $1$ Price$$12$ Terms$1\%10$ Net $40$ Distance$750$ Minimum order quantity$40,000$ Weight$1$ lbs Assume the following:Annual purchase volume $($requirements $-$ R$)$ for keyboards is expected to be $600,000$ unitsThe price $($C$)$ is constant regardless of volume or order quantityInventory holding rate $($k$)$ is $30\%$Working capital cost is $15\%$Your order quantity will always equal the minimum order quantity for the supplierYour freight rate is $$2$ per ton mile for a full truckload $(40,000$ lbs$)$ and $$2\mathrm{.}5$ for a less$-$than$-$truckload shipmentThe cost of an order $($S$)$ is $$175$There are $360$ days in a year.There are $2000$ pounds$/$tonTooling costs, quality costs, and late$-$delivery costs should be ignored.Q$26-$ What is the APC?$600,000$ units$$7,200,000$$$600,000$$$6,000,000$What is the AHCWhat is the AOCWhich freight rate will you useWhat is the annual freight costWhich payment terms will you useWhat is the value of the payment terms that you will use when calculating TCOWhat is the Total Cost of Ownership TCO