Dusty is considering three proposals to provide fencing for the 5 acres of grassland that needs to be fenced. Breezy offers an offer of $40 per unit with a 3% defect rate; Lady's offer is $50 per unit with a 0.5% defect rate; and Spike's offer is $30 per unit with a 5% defect rate. If a section of the fence collapses, it will cost an average of $500 in losses and herding costs to gather all the capybaras together. Dusty believes it will take 500 units to fence in this pasture configuration; Which supplier should win the business?

Answer rating: 100% (QA)

To determine which supplier should win the business we need to compare the overall costs including t... View the full answer