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Cost and price analysis is very important for buyers when they are preparing for a...

CIPS L4M5 Full Course Access
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Cost and price analysis is very important for buyers when they are preparing for a negotiation with supplier. Which of the following is a benefit of knowing supplier's fixed costs?

A.

The buyer would be able to know the right volume to reach break-even point

B.

The buyer would be able to know the point at which the supplier would reject the offer

C.

With the sole understanding of supplier's fixed cost, the buyer would be able to know the volume at which supplier maximises their profit in short-run

D.

The buyer would be able to get a comprehensive picture of supplier's efficiency

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