At the beginning of the new year, Mumford Regional's chief competitor is planning to open a brand-new Women's and Children's Hospital nearby. As a result, Mumford expects all its supply needs to decrease by 20%. Currently it's contracted vendor is Vendor C, using the information in Exhibit 10-14, determine whether if Mumford should change its contracted vendor to Vendor A or Vendor B. Enter total expense for using Vendor A. Enter total expense for using Vendor B. Enter total expense for using Vendor C. Which vendor should Mumford select? Enter Vendor A, Vendor B or Vendor C as your answer. Exhibit 10-14 Alternative Vendor Options for Mumford Regional Volume of Vendor A Vendor B Vendor C Supplies Unit Total Unit Total Unit Total Supply Needed Price Cost Price Cost Price Cost Item 1 88,000 $ 2.35 $ 206,800 $ 2.42 $ 212,960 $ 2.28 $ 200,640 Item 2 105,000 1.47 154,350 1.45 152,250 1.49 156,450 Item 3 65,000 3.07 199,550 3.10 201,500 3.12 202,800 Item 4 148,000 0.98 145,040 0.95 140,600 0.92 136,160 Item 5 33,000 4.47 147,510 4.39 144,870 4.40 145,200 Total Costs $ 853,250 $ 852,180 $ 841,250 3% of Fee Fixed: $25,000 Sales: $25,565 Fixed: $30,000 Grand Total $ 878,250 $ 877,745 $ 871,250
At the beginning of the new year, Mumford Regional's chief competitor is planning to open a brand-new Women's and Children's Hospital nearby. As a result, Mumford expects all its supply needs to decrease by 20%. Currently it's contracted vendor is Vendor C, using the information in Exhibit 10-14, determine whether if Mumford should change its contracted vendor to Vendor A or Vendor B.
- Enter total expense for using Vendor A.
- Enter total expense for using Vendor B.
- Enter total expense for using Vendor C.
- Which vendor should Mumford select? Enter Vendor A, Vendor B or Vendor C as your answer.
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Exhibit 10-14 Alternative Vendor Options for Mumford Regional |
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Volume of |
Vendor A |
Vendor B |
Vendor C |
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|
Supplies |
Unit |
Total |
Unit |
Total |
Unit |
Total |
|||
|
Supply |
Needed |
Price |
Cost |
Price |
Cost |
Price |
Cost |
||
|
Item 1 |
88,000 |
$ 2.35 |
$ 206,800 |
$ 2.42 |
$ 212,960 |
$ 2.28 |
$ 200,640 |
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|
Item 2 |
105,000 |
1.47 |
154,350 |
1.45 |
152,250 |
1.49 |
156,450 |
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|
Item 3 |
65,000 |
3.07 |
199,550 |
3.10 |
201,500 |
3.12 |
202,800 |
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|
Item 4 |
148,000 |
0.98 |
145,040 |
0.95 |
140,600 |
0.92 |
136,160 |
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|
Item 5 |
33,000 |
4.47 |
147,510 |
4.39 |
144,870 |
4.40 |
145,200 |
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|
Total Costs |
$ 853,250 |
$ 852,180 |
$ 841,250 |
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|
|
|
3% of |
|
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|
Fee |
|
Fixed: |
$25,000 |
Sales: |
$25,565 |
Fixed: |
$30,000 |
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|
Grand Total |
$ 878,250 |
$ 877,745 |
$ 871,250 |
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