#10 Question 10 (of 13) .00 points Conceptual Question 12-9 Sarah is a buyer for

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#10

Question 10 (of 13) .00 points Conceptual Question 12-9 Sarah is a buyer for... Sarah is a buyer for department store. A supplier offers her a 5% discount if she triples her usual order quantity. Which of the following best explains why Sarah should take the deal? Even though the increase in the operating costs is likely to exceed the benefit of the 5% discount. Sarah feels that her customers expect the lowest possible price. OSarah hopes that customers are likely to purchase more if they see an increase in the inventory in the store Sarah knows that even though she may triple her order quantity, this would increase her operating costs by far less than a factor of three. °Sarah knows that the sum of operating costs is probably less than 5% of the purchase cost, so an increase in the operating cost is unlikely to be a concern.

Explanation / Answer

Option C. Sarah knows that even though she may triple the order quantity, this would increase her operating costs by far less than a factor of three.

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