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Sandy has historically made her suncreen herself. Moving forward she has decided to outsource her sunscreen from a supplier. She has narrowed it down to two suppliers. Supplier A has a fixed cost of $17 000 with a variable cost of $3.25 per unit. Supplier B has a fixed cost of $19 500 and a variable cost of $2.00. What is her Indifference Point between the two suppliers? $2498.75 1250 units None of these are correct 2000 units. $2500

Sandy has historically made her suncreen herself. Moving forward she has decided to outsource her sunscreen from a supplier. She has narrowed it down to two suppliers. Supplier A has a fixed cost of $17 000 with a variable cost of $3.25 per unit. Supplier B has a fixed cost of $19 500 and a variable cost of $2.00. What is her Indifference Point between the two suppliers? $2498.75 1250 units None of these are correct 2000 units. $2500

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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Question 12 Listen Sandy has historically made her suncreen herself. Moving forward she has decided to outsource her sunscreen from a supplier. She has narrowed it down to two suppliers. Supplier A has a fixed cost of $17 000 with a variable cost of $3.25 per unit. Supplier B has a fixed cost of $19 500 and a variable cost of $2.00. What is her Indifference Point between the two suppliers? $2498.75 1250 units None of these are correct 2000 units. $2500
Transcribed Image Text:Question 12 Listen Sandy has historically made her suncreen herself. Moving forward she has decided to outsource her sunscreen from a supplier. She has narrowed it down to two suppliers. Supplier A has a fixed cost of $17 000 with a variable cost of $3.25 per unit. Supplier B has a fixed cost of $19 500 and a variable cost of $2.00. What is her Indifference Point between the two suppliers? $2498.75 1250 units None of these are correct 2000 units. $2500
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