Question: Current answer choice is wrong!! A company has to make a choice between two alternate suppliers. Supplier X will charge a fixed amount of $10,000
A company has to make a choice between two alternate suppliers. Supplier X will charge a fixed amount of $10,000 and thereafter, a variable cost of $2.40 per unit. Supplier Y will charge a fixed amount of $9,000 and thereafter, a variable cost of $2.25 per unit. Which of the following statements is TRUE? The crossover point between Supplier X and Y is approximately 6667 units. It is impossible for one supplier to have both of its costs lower than those of another supplier Supplier Y is cheaper than Supplier X at all volumes. Supplier X should be selected for very large production volumes. Supplier X is more profitable than Supplier Y and should be selected
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