An Industrial Producer Is Searching for a Supplier for Ball

question 15

Multiple Choice

An industrial producer is searching for a supplier for ball bearings.Its three most important supplier criteria are price,quality,and delivery reliability.The firm has decided that quality and delivery reliability should carry the same weight,and that each of them are twice as important as price.If the weights sum to 100%,what would a supplier with ratings of 40,90,and 75 in the three respective categories score as a weighted total?

• A)37
• B)370
• C)49
• D)205
• E)74

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Definitions:

Contribution Margin

The difference between sales revenue and variable costs, indicating how much revenue is available to cover fixed costs and generate profit.

Variable Cost

Costs that change in proportion to the level of activity or volume of production, such as materials and labor.

Cost of Goods Sold

The total cost directly associated with producing the goods sold by a business during a specific period, including labor, materials, and manufacturing overhead.

Product Costs

The costs directly associated with producing goods, including direct materials, direct labor, and manufacturing overhead.