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QUESTION 2 SmartHome Ltd has three major suppliers. The company is currently analysing its supplier costs to assess the relative performance of each supplier. For
QUESTION 2 SmartHome Ltd has three major suppliers. The company is currently analysing its supplier costs to assess the relative performance of each supplier. For 2021, SmartHome identied a range of activities that are consumed by each supplier. Such information is provided below. Activity _ _ _ _ Cost er unit of actIVI driver Order Material 85.00 per order Receive order 125.00 per delivery Inspect order 130.00 per delivery Return material to supplier 115.00 per return Pay supplier 65.00 per invoice Dispute invoice amount 250.00 per dispute In 2021, SmartHome's suppliers consumed the following number of activities: Boards Su o o lies Order Material Receive order Inspect order Return material to supplier Pay supplier Dispute invoice amount The cost of material purchases from each supplier during 2021 was as follows: Panels Ltd 120,000 Boards Supplies 75,000 Matrix Ltd 70,000 Required: a) Calculate the total cost of ownership for each of the three suppliers. [1? marks]
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