Use the following to answer the questions below.
A company is considering two suppliers for the purchase of a part needed for manufacturing. Particulars are as follows:

-Refer to the instruction above. What is the annual break-even quantity for choosing between the two suppliers?
A) 1,000 units
B) 2,000 units
C) 6,000 units
D) 12,000 units

Question

Use the following to answer the questions below.
A company is considering two suppliers for the purchase of a part needed for manufacturing. Particulars are as follows:
 
-Refer to the instruction above. What is the annual break-even quantity for choosing between the two suppliers?
A) 1,000 units 
B) 2,000 units 
C) 6,000 units 
D) 12,000 units

Quizplus · Accepted Answer

The annual break-even quantity for Supplier A is 2,000 units and for Supplier B is 8,000 units. Therefore, Supplier A is the better choice as it has a lower break-even quantity.

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