You are Purchasing Manager for Get Going, a new organisation promoting sport and activity, nationally. Most of your funding comes the novel LottoBingo smart card your organisation launched last year. The LottoBingo project was a great success, nearly eight million units were sold, at 1 each in the first six months. The card uses novel chip based technology that displays the bingo numbers on the players smartphone. The technology was developed by researchers at the Institute of Technology, Carlow, it is understood that the development cost was 225,000. The cards themselves are manufactured by TrickTeck Ltd., in Kilkenny. The initial order was for ten million units. It is now time to place an order for another ten million units to cover requirements over the coming months. The price agreed for the first order with TrickTeck was 330 per 1000 cards. Cost information is as follows : Materials 149.5 Labour 24.00 Production Overheads 24.00 (i) Design and Engineering Costs per unit 22.50 (ii) Margin 110.00 (iii) Total Price 330.00 (i) charged on the basis of labour cost (ii) re :225,000 fee paid to ITC (iii) based on a mark-up of 50% You have had an initial discussion with TrickTeck, who confirm that there will be no increase in the price of 330 per thousand units. You feel, however that a better price might be negotiated. From your research you know that the learning rate in the industry is 90%, and that raw material commodity prices are stable. You are aware also, that the cost of the chip technology, which is half of the material cost, has come down by 20%. You are required to prepare a report supported by a critical evaluation of the possibility for a better deal supported with relevant workings for a meeting with TrickTech which is planned for next week. Your organisation will be represented at the meeting by the Operations Manager (Des Foley) and yourself. The report should detail the key facts, and outline the agenda and strategy for the meeting with the supplier. TOTAL: