A buyer is comparing a domestic supplier quoting $10.40 per unit with an offshore supplier quoting $8.90 per unit. Which approach gives the most complete basis for the decision?
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A
Calculate total cost of ownership, including freight, duties, inventory carrying cost, quality, and risk
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B
Average the two quotes and negotiate both suppliers toward that number
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C
Select the lowest unit price because it has the biggest effect on margin
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D
Choose the domestic supplier because lead times are always shorter