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. For an annual volume of 3,000 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

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. For an annual volume of 3,000 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

Quizplus · Accepted Answer

Supplier A has a lower total cost than Supplier B for an annual volume of 3,000 units, based on the given cost table. Therefore, Supplier A should be chosen.

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