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Vernon plans to boost profits by getting lowest price on the outsourced item. This indicates (D) as the answer, ie: Vernon selects suppliers based on their bids. This will help Vernon decide which is the lowest.
I believed that C was better than E, because it says that the supplier is unlikely to become a competitor-> strengthens the argument. The company will make profit(since outsources for cheaper) and will keep making profit since no fear from competitors.
E says that manager will not spend their time on inefficient tasks. Is producing a product more expensive than a supplier would, synonym of inefficient task? I am not sure.
Nothing in E says that outsourcing will reduce the amount of inefficient task. Moreover, manager can focus on the core business but will that really increase the profits?
humm, is there anyone to support me or am I out of scope?
Anyway, on Wednesday I have my exam, so it's pretty late to change my way of thinking!
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