Single sourcing is sometimes the preferred choice to multiple sourcing because:

Group of answer choices

A. It ensures that a supplier will not become complacent.

B. It spreads risk.

C. It increases competition.

D. The supplier may have unique design and engineering capabilities.

Champs Sports Bar, State College, PA, has decided to perform a total cost analysis on its vodka supplier. Consumption is currently 6,000 bottles per year. This demand is predicted to stay at this level for the next few years. The current source, Byron's, charges $9.50 per bottle and can pack 288 bottles in a crate. The cost to ship the crate is $15. Another potential source of vodka is Pancho. Pancho charges $9.00 per bottle and ships 160 bottles in a crate at $25 per crate. Assume that a partial crate may be purchased and shipping is prorated. Which supplier is offering the better total delivered cost and what is the savings vs the other supplier.

Group of answer choices

A. Byron, $1,500

B. Poncho $1,775

C. Pancho , $2,400

D. Byron, $690