Individual Problems 4-4Suppose the average costs of all potential suppliers are as follows:UnitsAverage Total Cost Your company is contemplating bidding on an RFP (Request For Proposal) to produce 100,000 units of a specialized part. Suppose, however, that the requesting company really needs only 90,000 units of the part. Also assume that, because the part is specialized, potential suppliers do not yet possess the machines and factories needed to produce it and that overhead expenses involved in production have yet to be incurred. (Dollars Per Unit)90,0003100,0002 True or False: The requesting company can solicit lower bids by requesting 100,000 units as opposed to 90,000. True False
Individual Problems 4-4Suppose the average costs of all potential suppliers are as follows:UnitsAverage Total Cost
Your company is contemplating bidding on an RFP (Request For Proposal) to produce 100,000 units of a specialized part. Suppose, however, that the requesting company really needs only 90,000 units of the part. Also assume that, because the part is specialized, potential suppliers do not yet possess the machines and factories needed to produce it and that overhead expenses involved in production have yet to be incurred.
(Dollars Per Unit)90,0003100,0002
True or False: The requesting company can solicit lower bids by requesting 100,000 units as opposed to 90,000.
True
False
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