Use the Following to Answer the Questions Below

question 129

Multiple Choice

Use the following to answer the questions below.
The Steele Bike Company assembles bicycles for a major retail toy outlet.The main purchase is bicycle frames for making these bicycles.Dan Steele,the owner,wants to locate a low-cost supplier for the frames used in this assembly operation.The supplier will be selected based on total annual cost to supply Steele's needs.Annual requirements are for 100,000 frames,and the company operates 200 days a year.Two suppliers,Acme and State,have quoted the same price for the frames,but quantities,lead times and shipping costs are considerably different.The following data are available for the two suppliers.

-Refer to the instruction above.What are the total annual savings if the lower cost supplier is selected?

• A)$1,000
• B)$12,500
• C)$9,400
• D)$14,900

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Definitions:

Industrial Melanism

A phenomenon in which darker forms of species evolve in polluted environments, typically as a result of higher survival rate against predation.

Microevolution

Change in gene frequencies between populations of a species over time.

Gene Pool

The complete set of unique alleles in a population or species, representing its genetic diversity.

Gametes

Reproductive cells (sperm in males and eggs in females) that carry half the genetic information of an organism and combine during fertilization.