Answer:
The answer is D I would say.
<span>$1,347,472.70 is the correct answer</span>
Based on the base-case analysis of the firm's variable cost and the upper bounds anticipated, the worst case for variable cost per unit is $52.50.
<h3>What is the worst case for variable costs?</h3>
The worst case scenario for expenses would be a situation where they are higher instead of lower.
This means that the upper bound of the variable cost will be applied to find the worst case scenario:
= Base case analysis amount x (1 + upper bound)
= 50 x (1 + 5%)
= $52.50.
Find out more on variable costs at brainly.com/question/5965421.
Answer
e.Yes, it is cost effective to switch suppliers as total cost reduces from $3.744 to $3.060 and hence Groundz should switch. Please check the calculations.
The answer and procedures of the exercise are attached in a microsoft excel document.
Explanation
Please consider the data provided by the exercise. If you have any question please write me back. All the exercises are solved in a single sheet with the formulas indications.
