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EverRun Incorporated produces treadmills for use in exercise clubs and recreation centers. EverRun assembles, sells, and services its treadmills, but it does not manufacture the

EverRun Incorporated produces treadmills for use in exercise clubs and recreation centers. EverRun assembles, sells, and services its treadmills, but it does not manufacture the treadmill motors. Rather, treadmill motors are purchased from an outside vendor. Currently, EverRun is considering which motor to include in its new ER1500 series. Three potential suppliers have been identified: Venetti, Madison, and Edison; however, only one supplier will be used. The motors produced by these three suppliers are identical in terms of noise and cost

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