A company receives price proposals from 2 E-commerce Web site suppliers. Supplier X can provide an E-commerce site! for a fixed cost of $10,000 and variable costs of $2.40 per transaction. Supplier Y can provide the same web site for a fixed cost of $9,000 and variable costs of $2.25 per transaction. Which of the following statements is true?
A. It is impossible for one supplier to have both of its costs lower than those of another.
B. Supplier Y is cheaper than supplier X at all volumes: there is no crossover point.
C. Supplier X should be selected for very large transaction volumes.
D. The crossover point is approximately 6667 transaction.
E. Supplier X is more profitable than supplier Y and should be selected.
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A company receives price proposals from 2 E-commerce Web site suppliers. Supplier X can provide an E...
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