A company is negotiating with a potential supplier for the, Ask an Expert

Management Studies

A company is negotiating with a potential supplier for the purchase of 100,000 widgets. The company estimates that the supplier's variable costs are $5 per unit and that the fixed costs, depreciation, overhead, and so on, are $50,000. The supplier quotes a price of $10 per unit. Calculate the estimated average cost per unit. Do you think $10 is too much to pay? Could the purchasing department negotiate a better price? How?

View complete question

Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M92273401

Have any Question?Write your Review or question?

Related Questions in Operation Management

Your client is building a 200000 square foot office

Your client is building a 200,000 square foot office building in Boston MA. Assuming an electrically powered cooling plant with a coefficient of performance of 5.5 operating at 2,200 equivalent full load cooling hours pe ...

1 what are the characteristics of an effective listener are

1. What are the characteristics of an effective listener? Are you one? How would you use (or change) your listening habits to develop a climate of trust and openness to improve organizational communication. (Don’t forget ...

Healthcare financial management and economicsbased on

Healthcare Financial Management and Economics Based on research and your professional experience, describe the major roles and responsibilities of an effective managed care negotiating team. Provide a paragraph or two of ...

Your friend manages a retailer that has a history of

Your friend manages a retailer that has a history of superior profitability. She believes that one of the principle sources of competitive advantage for her enterprises are low labor costs. The low labor costs are due to ...

Question discuss the major challenges for managing health

Question : Discuss the major challenges for managing Health Care Information Technologies (HCIT) in the context of Health Care reform. How should existing and future HCITs be managed?

1 what is meant by the term inspecting quality into a

1. What is meant by the term "Inspecting Quality into a Product"? 2. Haley’s Cleaners uses a continuous review system for their bottles of X-319 cleaning solution. Lead time from the supplier = 9 days. Average demand pe ...

Based on your reading of chapter 9 or the text reed

Based on your reading of chapter 9 or the text (Reed, Pagattaro, Cahoy, Shedd, & Magid, 2015) and considering how a contract can be legally discharged and when a contract can be breached, respond to the learning activity ...

Now that you have identified the business problem and

Now that you have identified the business problem and translated it into an analytics problem, you can now identify the data needs and acquire the data. Provide a 500-1,000 word paper that, at a minimum, identifies the d ...

1 according to a study by the kauffman foundation the

1. According to a study by The Kauffman Foundation, the majority of the capital for entrepreneurial start-ups initially comes from a. public financing (e.g., SBA loans). b. venture capital financing c. bank financing d. ...

1 what type of marketing are you likely to fall for give an

1. What type of marketing are you likely to fall for? Give an example of your worst purchase. 2. Stress can be a "good thing" but it can also be a bad thing. Do you agree? Explain. Support your position. Answer must be ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Operation Management Expert