Q19
Single choice
A supply manager for JKL, Inc. finds a potential new supplier for an item included In a finished product.
Quality and service are comparable to those of the current supplier, and the new supplier's cost per unit is $.03 lower than that of the current supplier. Making the transition to the new supplier will require changes to operations costing approximately $12,000.
How many units would JKL need to buy in order to justify changing suppliers?