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 does the company save for the year by selecting this low-cost option (for annual requirements of 3,000 units)?
A) $1,000
B) $3,000
C) $6,000
D) $5,000

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 does the company save for the year by selecting this low-cost option (for annual requirements of 3,000 units)?
A) $1,000 
B) $3,000 
C) $6,000 
D) $5,000

Quizplus · Accepted Answer

Selecting the low-cost option saves $1 per unit, which adds up to $3,000 for annual requirements of 3,000 units. Therefore, the best choice is to choose the low-cost option and save $3,000.

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