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question 110

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Use the following to answer the questions below.
The Burdell Wheel and Tire Company assembles tires to wheel rims for use on cars during manufacture of vehicles by the automotive industry.Burdell wants to locate a low-cost supplier for the tires he uses in his assembly operation.The supplier will be selected based on total annual cost to supply Burdell's needs.Burdell's annual requirements are for 25,000 tires,and the company operates 250 days a year.The following data are available for two suppliers being considered.
Use the following to answer the questions below. The Burdell Wheel and Tire Company assembles tires to wheel rims for use on cars during manufacture of vehicles by the automotive industry.Burdell wants to locate a low-cost supplier for the tires he uses in his assembly operation.The supplier will be selected based on total annual cost to supply Burdell's needs.Burdell's annual requirements are for 25,000 tires,and the company operates 250 days a year.The following data are available for two suppliers being considered.    -Refer to the instruction above.What are the total annual costs if Lexington Tire is the supplier selected? A) $791,600 B) $792,600 C) $772,320 D) $769,320
-Refer to the instruction above.What are the total annual costs if Lexington Tire is the supplier selected?

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Definitions:

Free-Rider Problem

A situation in economics where individuals benefit from resources or services without paying for their cost, leading to underprovision or depletion of those resources.

Broadly Available

Refers to something that is widely accessible or obtainable by a large portion of the population without significant restrictions.

Nonmembers

Individuals who are not part of a specific group or organization.

Staff Organization

The structured arrangement of roles, responsibilities, and relationships within a workplace, designed to facilitate efficient operation and achievement of the organization's goals.

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