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

question 62

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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, giant rodents native to Brazil. Dusty believes it will take 1000 units to fence in this pasture configuration; what is the BEST choice for supplier?


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