Question
GoGo Furniture needs to purchase glass panes to make glass top coffee tables. Last year GoGo Furniture has two suppliers, BolBol and TolTol. Based on
GoGo Furniture needs to purchase glass panes to make glass top coffee tables. Last year GoGo Furniture has two suppliers, BolBol and TolTol. Based on last year's experience with these two suppliers, GoGo provides you with the following supplier related information:
Supplier related activitiesCost driverCost per unit of activity driverBolBolTolTolReturning poor quality glass panesNo. of glass panes returned$1202510Processing purchase ordersNo. of purchase orders$201530Receiving and inspecting deliveriesNo. of deliveries$501515Supplier auditNo. of audits$100052Rework due to poor quality glassNo. of glass top tables reworked$1006015Purchase price of glass panes$100$150No. of glass panes purchased500800
The total costs of ownership of BolBol and TolTol are, respectively:
Select one:
A.BolBol $15 050; TolTol $6050
B.BolBol $10 050; TolTol $4050
C.BolBol $50 300; TolTol $120 600
D.BolBol $65 050; TolTol $126 050
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