Use the Following to Answer the Questions Below

question 55

Multiple Choice

Use the following to answer the questions below.
The Burdell Wheel and Tire Company has completed a total cost analysis for two suppliers of tires to support their business.They also consider delivery speed,consistent quality and environmental sensitivity in their selection process.Each criterion is given a weight (total = 100 points) ,and each supplier is scored on each criterion (1 = poor,10 = excellent) .The data are shown in the following table.

-Refer to the instruction above.Using the preference matrix approach for selecting suppliers,which supplier should Burdell select? total weighted score?

• A)Lexington Tire
• B)Irmo Auto
• C)Neither is acceptable-their preference matrix scores are not high enough to be selected.
• D)More information is needed to make this decision.

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Definitions:

Net Price Method

Net price method is a pricing strategy that accounts for discounts, rebates, and other incentives upfront, presenting the final price to consumers.

Sales Discounts

Reductions granted by a seller to the buyer for early payment or for meeting other conditions defined in the sales agreement.

Gross Sales

Gross sales refer to the total sales revenue of a company without deducting any sales returns, allowances, or discounts.

Selling Expenses

Costs incurred directly in the selling of goods or services, including advertising, sales staff salaries, and commissions, which are often reported separately from general and administrative expenses.