Ask Question
BusinessBusiness
25 November, 22:50

Your company is contemplating bidding on an RFP (Request For Proposal) to produce 100,000 units of a specialized part. Suppose, however, that the requesting company really needs only 90,000 units of the part. Also assume that, because the part is specialized, potential suppliers do not yet possess the machines and factories needed to produce it and that overhead expenses involved in production have yet to be incurred. Suppose the average costs of all potential suppliers are as follows: Units Average Total Cost (Dollars Per Unit) 90,000 4 100,000 3 True or False: The requesting company can solicit lower bids by requesting 100,000 units as opposed to 90,000. True False

+1
Answers (2)
  1. 26 November, 01:18
    0
    True

    Explanation:

    The computation is shown below:

    At 90,000 units

    The total cost is

    = 90,000 units * $4

    = 360,000 units

    At 100,000 units

    The total cost is

    = 100,000 units * $3

    = $300,000

    So as we can see that there is a difference of $60,000 after deducting the total cost at 90,000 units from total cost at 100,000 units

    Therefore, in 100,000 units the company could save $60,000

    Hence, the given statement is true
  2. 26 November, 01:27
    0
    Answer: True

    Explanation:

    Average costs of all potential suppliers:

    Units = 90,000 at average total cost = $4 per unit

    So,

    Total cost = No. of units * Average total cost per unit

    = 90,000 * $4

    = $360,000

    Units = 100,000 at average total cost = $3 per unit

    So,

    Total cost = No. of units * Average total cost per unit

    = 100,000 * $3

    = $300,000

    Hence, the company will save 60,000 dollar if it orders 100,000 units.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Your company is contemplating bidding on an RFP (Request For Proposal) to produce 100,000 units of a specialized part. Suppose, however, ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
Currency is? A. an adjective for current economic news B. Stocks and bonds C. paper bills and coins D. government-issued bank checks.
Answers (1)
The buying and selling of government securities by the Fed A system in which banks keep only a percentage of their deposits on reserve as vault cash and deposits at the Fed The interest rate the Fed charges on loans of reserves to banks The maximum
Answers (2)
Fairway's april sales forecast projects that 7,400 units will sell at a price of $11.90 per unit. the desired ending inventory is 20% higher than the beginning inventory, which was 2,400 units.
Answers (1)
Brendan and sean combined their love of baseball with a business venture. they purchased a small cart and began selling memorabilia outside of their hometown stadium. their first year went well, but the past two years have been quite a struggle.
Answers (1)
Derek will deposit $3,382.00 per year for 12.00 years into an account that earns 15.00%, The first deposit is made next year. He has $12,548.00 in his account today. How much will be in the account 37.00 years from today?
Answers (1)
New Questions in Business
An online medicaladvice company just completed an IPO with an investment bank on a firm-commitment basis. The firm issued 5 million shares of common stock, and the underwriting fees were $2.10 per share. The offering price was $27.90 per share.
Answers (1)
Which of the following is an example of how the principle of beneficence can be applied to a study employing human subjects? Ensuring that the selection of subjects includes people from all segments of the population.
Answers (1)
Match the following definitions with the correct term 1. Delocalization of food production and consumption connections 2. The process of learning culturally specific preferences passed from generation to generation 3.
Answers (1)
Adobe Systems Incorporated reported the following accounts and amounts (in millions) in its financial statements for the year ended November 30, 2013.
Answers (1)
A Trek Cycles manufactures and sells bicycles to retailers. The X-1 model sells for $500 and has per-unit variable costs of $300 associated with its production. The company has fixed expenses of $30,000 per month.
Answers (1)
Home » Business » Your company is contemplating bidding on an RFP (Request For Proposal) to produce 100,000 units of a specialized part. Suppose, however, that the requesting company really needs only 90,000 units of the part.
Sign Up Forgot Password?