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Business, 16.06.2020 18:57 allenlitterell

A company is considering two suppliers for the purchase of a part needed for manufacturing. Particulars are as follows: SUPPLIER A: Fixed Costs = $9,000 / year Variable Cost / Unit = $2
SUPPLIER B: Fixed Costs = $3,000 / year Variable Cost / Unit = $5

Refer to the information above. For an annual volume of 1,800 units, which supplier should be chosen?

a. Supplier A
b. Supplier B
c. Either Supplier A or Supplier B, because costs are the same for either option at 3,000 units
d. Can't be determined with information given

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Answers: 1

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A company is considering two suppliers for the purchase of a part needed for manufacturing. Particul...

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