I need help with my presentation's required recommendation and the Pros and cons of this case.

Chapter 11 Cost Management 319 the freight, which usually costs about 3 percent of the purchase price, and they pay the packaging We have looked sound for other suppliers for this part and ta't been sble to find anyone that capable of heating the current price. Saunderstas been a good sup- per Their quality and time delivery perfomance have been excellent I wouldn't want to owe them as a supplier Following the meeting. Jim examined the Annual Survey of Manufactures, published by the US Depart meat of Commerce. Within the report was a breakdown of manufacturing costs, as a percentage of sales, for U.S. companies in Saunders's industry code. According to data from the previous year, the breakdown was material, 42 percent; direct labor, 13 percent; indirect labor, 6 per cent, and overal, 20 percent. SUPPLIER NEGOTIATION Glen all that the budgeted cost-price ratio for the galler chain was un optable and was anxious to see what could be done to address the probkan. He remarked to Jim, "The competition is prolly rict about maintaining a 50-5000 price ratio on their product lines. Why is it they can sell this product for $30.00 and we can't match their cust structure?" Jiun felt that he had gathered nough information to do some preliminary analysis. However, he was aware that he coded to think about how he could use the in- formation in his negotiation with the vendor. Susan luad indicated that Wayne Saunders had been a tough neger- tiator, with a take it or leave it allitude regarding price ing, and had been unwilling to share any specific cost information to justify his requests for price increases