Based on the results shown in the initial spreadsheet, which supplier do you think CompuTech should select?$+$

multiple choice $1$

Supplier $1$ is the better choice.

Supplier $2$ is the better choice.

The cost is the same for either supplier.

CompuTech estimates it will need $100,000$ chips a year if sales go as expected. But if sales are slow, fewer chips will be needed. This isn$$t an issue with Supplier $2$; its price is the same at any quantity. However, Supplier $1$s price per chip will be $$1\mathrm{.}95$ if CompuTech buys less than $90,000$ during the year. If CompuTech only needs $84,500$ chips, which supplier would be more economical?

multiple choice $2$

Supplier $1$ is the better choice.

Supplier $2$ is the better choice.

The cost is the same for either supplier.

If the actual purchase quantity will be $84,500$ and Supplier $1$s price is $$1\mathrm{.}95,$ what is the highest price at which Supplier $2$ will still be the lower$-$cost vendor for CompuTech?

multiple choice $3$

$$1\mathrm{.}84$

$$1\mathrm{.}87$

$$1\mathrm{.}90$

$$1\mathrm{.}95$

$$2\mathrm{.}25$

CompuTech shared their concern about the higher failure rate with Supplier $2.$ The supplier said they believe they can bring the failure rate down to $0\mathrm{.}5\%$ but it will increase the cost per chip to $$1\mathrm{.}94.$ The connector cost would remain $$0\mathrm{.}08$ each. At a quantity of $84,500,$ which supplier would be most cost effective?

multiple choice $4$

Supplier $1$ is the better choice.

Supplier $2$ is the better choice.

The cost is the same for either supplier.

Continuing the scenario d above, which cost represents the most significant difference between Supplier $1$ and Supplier $2$ prices for this scenario?

multiple choice $5$

total cost of chips

total cost of replacing chips

total cost of connectors

total inventory cost

total transportation cost