Sensor Technologies Sensor Technologies is a small manufacturing company located in Schenectady, New York. They produce a variety of motion and light detectors to be used in a wide range of settings. Sensor Technologies does not manufacture the electronic components contained within their sensor, but rather buys them from large scale electronics manufacturers and assembles their own products. Katrina Brown, the head of purchasing for Sensor Technologies, needs to acquire the new electrical components for an upcoming production run of the Model Z-62 motion sensor. The production plan is to produce 50,000 units. For the primary sensor chip for the Model Z-62, Katrina has a couple of options. She can buy the units from AMG Electronics. AMG Electronics is a well-established electronics manufacturing firm that has a great reputation for customer service, and guarantees that all of their sensor chips have been tested and are 100% defect free. If Katrina buys from AMG, she is sure of getting defect-free chips, and she has been quoted a price of $2.62 per chip. Her other option is to buy the chips from Tech Relectronics. Tech Relectronics buys the production overruns from various chip manufacturers, then tries to resell the chips to other