Answer:
Modified Rebuy
Explanation:
Modified Rebuy is the situation or circumstance of buying in which the organization or an individual purchase the goods that have been purchased or bought prior but changes either some other elements or supplier of the previous or prior order.
In this situation. the buyer wants the modification product specifications, suppliers, terms and prices.
So, in this case, Caribou is looking for the new supplier for the product it has bought in the past, which makes the situation of modified rebuy.
Answer:
The interpretation of the discussion is characterized throughout the explanation segment below.
Explanation:
- Concentrate on an investigation as well as implementation or enhancement as something with a category or manner of price-free competitive advantage.
- With more than just related diversification, there is much less inflationary pressure as well as the corporation or manufacturer should start concentrating on non-price competitive advantage throughout the opportunity to expand mostly on the supply chain.
So the answer here is just the appropriate one.
Answer:
the maximum price the company can pay for the component is $24.65
Explanation:
- direct materials: $8.10 per unit
- direct labor: $6.40 per unit
- variable manufacturing overhead: $1.70 per unit
- fixed manufacturing overhead: $4.40 per unit
- total variable costs: $20.60 per unit
Current total manufacturing costs for 16,000 units = $20.60 x 16,000 units = $329,600
if the component is bought, 30% of fixed costs can be avoided = $4.40 x 16,000 x 30% = $21,120 or $1.32
or the machine can be used to manufacture another product that has a contribution margin of $8.10 per unit and a total production of 8,000 units = $8.10 x 8,000 = $64,800 or $4.05 per unit
by purchasing the component from a vendor, the company will save either $1.32 or $4.05 per unit
therefore the company should purchase the component if its maximum price is = $20.60 + $4.05 = $24.65
yes it's B even tho it could be possible its the worst example :)
