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Eaton Products seeks to select the minimum total cost vendor for a product. Each of the four product vendors has an associated fixed order cost
Eaton Products seeks to select the minimum total cost vendor for a product. Each of the four product vendors has an associated fixed order cost along with a per unit product cost. Data are provided in the workbook accompanying this quiz. If 30 units are purchased, then the cost for vendor AAA is $360. the cost for vendor BBB is $320. the cost for vendor CCC is $310 Eaton would be indifferent between vendors BBB and DDD. All the above answers are correct. None of these answers are correct. Eaton Products Vendor Analysis Vendor AAA BBB CCC DDD Units Purchased Minimum Total Cost Fixed Cost Unit Cost Total Cost Vendor $210 $5.00 $140 $6.00 $100 $7.00 $80 $8.00 Mimimum Cost Vendor File Preview Total Cost Vendor Units 10 20 30 40 50 60 65 70 75 80 212223242585R28
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