Question
The Tavern Restaurant in State College, PA, has decided to perform a total cost analysis on its suppliers of Ultra-Pure Mount Nittany Sparkling Water. Consumption
The Tavern Restaurant in State College, PA, has decided to perform a total cost analysis on its suppliers of Ultra-Pure Mount Nittany Sparkling Water. Consumption is currently 6,000 bottles per year. Demand is predicted to stay at that level for the next few years. The current source, United, charges $10.50 per bottle and can pack 335 bottles in a crate. The cost to ship the crate is $25. Another potential source of this product is National. National charges $10.25 per bottle and ships 300 bottles in a crate at $38 per crate. Assume that a partial crate may be purchased, and shipping is prorated. Which supplier is offering the better total delivered cost and what is the savings vs. the other supplier (closest answer within $10)?
Group of answer choices
National: $1,325
United: $575
United: $1,010
National: $1,190
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