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Lambert Company has two suppliers Deming and Leming The cost of warranty work due to defective components is $2000000 The total units repaired under warranty average 100000 of which 90000 have

Lambert Company has two suppliers: Deming and Leming. The cost of warranty work due to defective components is $2,000,000. The total units repaired under warranty average 100,000, of which 90,000 have components from Deming and 10,000 have components from Leming. Select the items below that represent true statements.

a. Components purchased from Leming cost $200,000 more than their purchase price.

b. Components purchased from Deming cost $1,800,000 more than their purchase price.

c. Components from Leming appear to be of higher quality.

d. All of the above are true.

e. None of the above is true.

 

Jun 27 2020 View more View Less

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