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

question 46

Essay

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 with a defect rate of 2%; Lady's bid is $50 per unit with a defect rate of 0.5%; and Spike's bid is $30 per unit with a defect rate of 5%.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 1000 units to fence in this pasture configuration; what is the BEST choice for supplier?

---

Definitions:

Stockholders

Individuals or entities that own shares in a corporation, giving them partial ownership and possibly entitlements to dividends.

Takeover Bid

An offer made by an individual or a company to acquire a controlling stake in another company by buying its shares at a specified price.

Wealth Gains

The increase in the financial assets and resources owned by individuals, companies, or countries, indicating a sign of financial health and prosperity.

Divestiture

The process of selling off a subsidiary company or business division.