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Treetop Outdoor Living is seeking to assess the performance of its two main suppliers, Sustainable Timber and Rainbow Upholstery. It has collected the following supplier-related
Treetop Outdoor Living is seeking to assess the performance of its two main suppliers, Sustainable Timber and Rainbow Upholstery. It has collected the following supplier-related information: Sustainable Timber Rainbow Upholstery Annual units purchased Units 242 000 64 000 Annual purchase amount $ 1 250 000 365 000 Annual supplier activity costs $ 315 500 114 750 Which of the following statements is correct? a. Rainbow Upholstery has a lower purchase price per unit than Sustainable Timber. b. Rainbow Upholstery has a higher total cost of ownership per unit than Sustainable Timber. Rainbow Upholstery has a higher total cost of ownership per unit than Sustainable Timber. c. Rainbow Upholstery has a higher total supplier activity cost than Sustainable Timber. d. All of the given answers
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