Company X can purchase a certain component from either Supplier A or Supplier B. Supplier A charges $10 per unit for the first 2,000 units in an order, $9 per unit for the next 2,000 units in the order, and $8 per unit for any unit beyond. Supplier B char

Company X can purchase a certain component from either Supplier A or Supplier B. Supplier A charges $10 per unit for the first 2,000 units in an order, $9 per unit for the next 2,000 units in the order, and $8 per unit for any unit beyond. Supplier B char

Company X can purchase a certain component
from either Supplier A or Supplier B. Supplier A charges $10 per unit for the
first 2,000 units in an order, $9 per unit for the next 2,000 units in the
order, and $8 per unit for any unit beyond. Supplier B charges $9 per unit for
orders of no more than 4,000 units and $8.5 per unit for any bigger orders.

(a)
Suppose Company X decides to buy 5,500 units from Supplier A. What is the
average unit cost of the order? Please
provide at least one step of calculation and the correct answer for full
credit. (4 points)

(b)
If Company X wants to place an order of 5,500 units, which supplier offers a
lower total cost. Provide the reason for
full credit.

Price: £ 45

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