Dusty Is Evaluating Three Bids to Supply Fence Hardware for the 5

question 12

Multiple Choice

Dusty is evaluating three bids to supply fence hardware for the 5 acres of pasture that need to be fenced.Breezy submits a bid of $40 per unit,Lady's bid is $50 per unit,and Spike's bid is $30 per unit.If a section of fence fails,it costs an average of $500 in losses and herding costs to round up all of the capybaras.Dusty believes it will take 500 units to fence in this pasture configuration.What defect rates for the three suppliers would make Dusty indifferent among them from a total cost standpoint?

• A) Breezy 5%, Spike 6%, Lady 2%
• B) Breezy 3%, Spike 5%, Lady 1%
• C) Breezy 1%, Spike 3%, Lady 2%
• D) Breezy 2%, Spike 3%, Lady 4%

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Definitions:

Achievement Drive

The inner motivation that propels individuals to pursue goals, demonstrate high standards, and strive for success.

Honesty

The quality of being truthful, fair, and free from deceit or fraud in actions, speech, and beliefs.

Organizational Goals

The objectives or targets that a company or an institution aims to achieve within a set timeframe.

Theory X

A management theory suggesting that employees are naturally lazy and will avoid work if they can, implying the need for strict supervision.