headquarters located in Belleville, Ontario. She is responsible for managing a variety of product categories, one of which is personal sanitation. Over the last few years profits have declined in this category and as a result Michelle has faced increasing pressure from senior management to improve profitability of the category without sacrificing quality. This year, senior management has asked Michelle to create a new product for the category - bottled hand sanitizer. The bottles are to be made of plastic with a pump at the top and feature the Canada Drug label wrapped around the bottle. Michelle needs to find a single source supplier to manufacture, bottle and label the product. To do this she prepared and released an RFQ based on her total sales estimate for the year, received several quotes and has narrowed her selection down to two suppliers - Biomed located in Toronto, Ontario and Dongguan Traders Ltd. located in Qingdao China. Michelle has estimated that a total of 10,000 sales units will be required each month over a total of twelve months (12) months. Regardless of who Michelle selects, she will incur tooling charges because the labels require the new Canada Drug logo to be printed on them during