As mentioned previously, based on both quantitative and qualitative factors, McCormack decides to prioritise the production and sale of Product A in the upcoming month. You are now informed that McCormack had decided NOT to transact with Supplier X. Another external supplier, Supplier Y, then approaches McCormack with an offer to supply Product A for the upcoming month. Apart from the price paid to Supplier Y, there is NO ADDITIONAL cost that needs to be incurred by McCormack in order to sell the units that are purchased externally from Supplier Y. What is the highest (break-even) price that McCormack would be willing to pay Supplier Y for each unit of Product A? Consider only quantitative factors. Show all workings. How many units of Product A would McCormack be purchasing from Supplier Y at the price calculated in the previous question to satisfy the demand for its products in the upcoming month. Assume that McCormack is willing to purchase Product A at this price even though it earns zero profit. Consider only quantitative factors. Show all workings. You are now told that due to issues that are beyond Supplier Y's control, it is only able to supply Product Aif McCormack's order is at least for a certain (minimum) quantity of units. This minimum quantity is 50% greater than the number of units calculated in the previous question. Would this change the highest price that McCormack is willing to pay Supplier Y for each unit of Product A based on quantitative factors alone i.e., the price calculated in Question 25? Explain. If the answer is 'it depends include all factors that would affect your answer as part of your explanation. Calculations are not required. As mentioned previously, based on both quantitative and qualitative factors, McCormack decides to prioritise the production and sale of Product A in the upcoming month. You are now informed that McCormack had decided NOT to transact with Supplier X. Another external supplier, Supplier Y, then approaches McCormack with an offer to supply Product A for the upcoming month. Apart from the price paid to Supplier Y, there is NO ADDITIONAL cost that needs to be incurred by McCormack in order to sell the units that are purchased externally from Supplier Y. What is the highest (break-even) price that McCormack would be willing to pay Supplier Y for each unit of Product A? Consider only quantitative factors. Show all workings. How many units of Product A would McCormack be purchasing from Supplier Y at the price calculated in the previous question to satisfy the demand for its products in the upcoming month. Assume that McCormack is willing to purchase Product A at this price even though it earns zero profit. Consider only quantitative factors. Show all workings. You are now told that due to issues that are beyond Supplier Y's control, it is only able to supply Product Aif McCormack's order is at least for a certain (minimum) quantity of units. This minimum quantity is 50% greater than the number of units calculated in the previous question. Would this change the highest price that McCormack is willing to pay Supplier Y for each unit of Product A based on quantitative factors alone i.e., the price calculated in Question 25? Explain. If the answer is 'it depends include all factors that would affect your answer as part of your explanation. Calculations are not required
