Ask Question
BusinessBusiness
12 March, 04:32

Your company is contemplating bidding on an RFP (Request For Proposal) to produce 100,000 units of a specialized part. Suppose, however, that the requesting company really needs only 90,000 units of the part. Also assume that, because the part is specialized, potential suppliers do not yet possess the machines and factories needed to produce it and that overhead expenses involved in production have yet to be incurred. Suppose the average costs of all potential suppliers are as follows: Units Average Total Cost (Dollars Per Unit) 90,000 4 100,000 3 True or False: The requesting company can solicit lower bids by requesting 100,000 units as opposed to 90,000. True False

+1
Answers (2)
  1. 12 March, 04:34
    0
    True

    Explanation:

    The computation is shown below:

    At 90,000 units

    The total cost is

    = 90,000 units * $4

    = 360,000 units

    At 100,000 units

    The total cost is

    = 100,000 units * $3

    = $300,000

    So as we can see that there is a difference of $60,000 after deducting the total cost at 90,000 units from total cost at 100,000 units

    Therefore, in 100,000 units the company could save $60,000

    Hence, the given statement is true
  2. 12 March, 04:46
    0
    Answer: True

    Explanation:

    Average costs of all potential suppliers:

    Units = 90,000 at average total cost = $4 per unit

    So,

    Total cost = No. of units * Average total cost per unit

    = 90,000 * $4

    = $360,000

    Units = 100,000 at average total cost = $3 per unit

    So,

    Total cost = No. of units * Average total cost per unit

    = 100,000 * $3

    = $300,000

    Hence, the company will save 60,000 dollar if it orders 100,000 units.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Your company is contemplating bidding on an RFP (Request For Proposal) to produce 100,000 units of a specialized part. Suppose, however, ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
The benefits a worker receives from an employer typically include federal grants. the hourly pay rate. interest on student loans. medical and dental coverage.
Answers (2)
Candela Company has retained earnings of $500,000, common stock of $400,000, and total common stockholders' equity of $1,200,000. It has 200,000 shares of $2 par value common stock outstanding which is currently selling for $5 per share.
Answers (1)
Being a team player means calling on your skills of?
Answers (1)
The five vital signs that are evaluated in the apgar are:
Answers (1)
Karen made a commission of $3,522.75 on the sale of a property. she split her commission equally with her broker which is 50% to the broker and 50% to karen. her broker took 55% of the total commission on a 7% commission rate.
Answers (1)
New Questions in Business
Tara is responsible for the strategic planning retail planning process in her organization. She has identified the strategic opportunities. Which of the following steps is most likely Zara's next stage in the strategic retail planning process? A.
Answers (1)
During 2015, Blevert Co. introduced a new line of machines that carry a three-year warranty against manufacturer's defects.
Answers (1)
There are five stakeholders a company must consider when practicing social responsibility: Group of answer choices Employees Investors Environment Community Countries Customers Board of Directors
Answers (1)
Mize Company provided $45,500 of services on account, and collected $38,000 from customers during the year. The company also incurred $37,000 of expenses on account, and paid $32,400 against its payables.
Answers (1)
Describe three of the five different types of investments available to consumers and the advantages and disadvantages of each.
Answers (1)
Home » Business » Your company is contemplating bidding on an RFP (Request For Proposal) to produce 100,000 units of a specialized part. Suppose, however, that the requesting company really needs only 90,000 units of the part.
Sign Up Forgot Password?