Oftentimes businesses need to consider additional costs beyond simply the price of a good or service when considering between two suppliers of an item. This perspective, considering more than just the price of the good or service purchased, is called the Total Cost of Ownership. Companies often should and do consider many more costs than we will consider in the following example. Purple Reign, an apparel manufacturer located in Minneapolis, sources the fabric used for clothes from outside vendors. Recently, Purple Reign has decided to compare pricing on a black roll of fabric used to manufacture 10,000t-shirts. Purple Reign must decide between a fabric provider located in Bangladesh versus one Jocated in Graniteville, South Carolina. Use the chart below to find a TCO from each provider to help Purple Reign decide which provider should be utilized to provide the black fabric. Making the correct sourcing decision can have a huge impact on profitability. The Sourcing manager at Purple Reign believes that if they undertake a sourcing evaluation for all fabric supplies they may be able to save $150,000. Purple Reign currently makes a net profit of 15% on all sales. How much in additional sales would the sales team need to make to equal the savings on the proposed sourcing project? Less than or equal to $500,000 Greater than $500,000 but less than or equal to $800,000 Greater than $800,000 but less than or equal to $1,100,000 Greater than $1,100,000