Dusty is evaluating three bids to supply fence hardware for the 5 acres of pasture that need to be fenced. Breezy submits a bid of $40 per unit, Lady's bid is $50 per unit, and Spike's bid is $30 per unit
If a section of fence fails, it costs an average of $500 in losses and herding costs to round up all of the capybaras. Dusty believes it will take 500 units to fence in this pasture configuration. What defect rates for the three suppliers would make Dusty indifferent among them from a total cost standpoint?
A) Breezy 5%, Spike 6%, Lady 2%
B) Breezy 3%, Spike 5%, Lady 1%
C) Breezy 1%, Spike 3%, Lady 2%
D) Breezy 2%, Spike 3%, Lady 4%
Answer: B
You might also like to view...
Which of the following generations is the most educated to date?
A) Lost Generation B) Baby boomers C) Millennials D) Generation X E) Silent Generation
Which three consumer motivations are key to the VALS™ system?
A) faith, family, and finances B) age, gender, and ethnicity C) place of usage, time of usage, and frequency of usage D) ideals, achievement, and self-expression E) income, education, and geographic location