Question
Champs Sports Bar in State College, PA has decided to perform a total cost analysis on vodka suppliers. Consumption is currently 7,000 bottles per year.
Champs Sports Bar in State College, PA has decided to perform a total cost analysis on vodka suppliers. Consumption is currently 7,000 bottles per year. Demand is predicted to stay at that level for the next few years. The current supplier, Byron's, charges $10.75 per bottle and packs 250 bottles in a crate. The cost to ship the crate is $18.00. Another potential source of vodka is Pancho. Pancho charges $9.75 per bottle and ships 100 bottles in a crate at $22.95 per crate. Assume that a partial crate may be purchased. Which supplier has the lowest total delivered cost and what is the projected annual cost rounded to the nearest "thousand" for that Supplier?
Pancho $65,000
Pancho, 70,000
Byron; $76,000
Byron; 65, 000
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