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14 Feb 2025, 22:04
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The CEO of a small business sent out the following new guidelines for any new vendor approval for purchases:
1. The vendor must have minimum assets of $1.5 million.
2. The vendor must purchase electrical components from ABB or Schneider.
3. The vendor must have at least 5 years of experience in the industry.
4. The vendor must provide a minimum of two client references from Fortune 500 companies.
1. The vendor must have minimum assets of $1.5 million.
2. The vendor must purchase electrical components from ABB or Schneider.
3. The vendor must have at least 5 years of experience in the industry.
4. The vendor must provide a minimum of two client references from Fortune 500 companies.
Vendor B
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
25%
(medium)
Question Stats:
92% (01:37) correct
8%
(01:58)
wrong
based on 151
sessions
History
Date
Time
Result
Not Attempted Yet
Considering only the price quote, shipping and spare parts cost, which vendor can deliver the project at the lowest cost?
| Vendor A | |
| Vendor B | |
| Vendor C | |
| Vendor D |
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Official Answer
Vendor B
The vendor offering the lowest quote for the project satisfies all of the CEO’s criteria: No
All vendors satisfy the minimum criteria for net assets: Yes
Only one vendor satisfies all of the criteria established by the CEO: No
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
15%
(low)
Question Stats:
88% (01:03) correct
12%
(01:24)
wrong
based on 146
sessions
History
Date
Time
Result
Not Attempted Yet
Considering the CEO’s new guidelines, select Yes/ No for each of the following statements:
| Yes | No | |
| The vendor offering the lowest quote for the project satisfies all of the CEO’s criteria | ||
| All vendors satisfy the minimum criteria for net assets | ||
| Only one vendor satisfies all of the criteria established by the CEO |
ShowHide Answer
Official Answer
The vendor offering the lowest quote for the project satisfies all of the CEO’s criteria: No
All vendors satisfy the minimum criteria for net assets: Yes
Only one vendor satisfies all of the criteria established by the CEO: No
Vendor A
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
5%
(low)
Question Stats:
95% (00:31) correct
5%
(00:28)
wrong
based on 140
sessions
History
Date
Time
Result
Not Attempted Yet
Considering both the cost and the CEO's guidelines, which vendor can offer to complete the project at the lowest total cost?
| Vendor A | |
| Vendor B | |
| Vendor C | |
| Vendor D |
ShowHide Answer
Official Answer
Vendor A
IMPROVED VERSION OF THIS QUESTION IS HERE: https://gmatclub.com/forum/the-company- ... 43805.html
quotes.png [ 21.72 KiB | Viewed 1193 times ]
comparison.png [ 25.18 KiB | Viewed 1188 times ]
Attachment:
quotes.png [ 21.72 KiB | Viewed 1193 times ]
Attachment:
comparison.png [ 25.18 KiB | Viewed 1188 times ]
poojaarora1818
Joined: 30 Jul 2019
Last visit: 14 July 2025
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Updated on: 17 Feb 2025, 10:57
Originally posted by poojaarora1818 on 14 Feb 2025, 22:55.
Last edited by poojaarora1818 on 17 Feb 2025, 10:57, edited 1 time in total.
Last edited by poojaarora1818 on 17 Feb 2025, 10:57, edited 1 time in total.
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Bismuth83
Attachment:
quotes.png
Attachment:
comparison.png
Solution: Vendor A total cost = $545000
Vendor B total cost = $500000
Vendor C total cost = $550000
Vendor D total cost = $533000
Hence option B is the correct one.
Question 2. Considering the CEO’s new guidelines, select Yes/ No for each of the following statements:
Statement 1 The vendor offering the lowest quote for the project satisfies all of the CEO’s criteria. No (Vendor B offers the lowest quote but cannot meet the requirements of having at least two Fortune 500 client references.)
Statement 2 All vendors satisfy the minimum criteria for net assets. Yes, it is true.
Statement 3 Only one vendor satisfies all of the criteria established by the CEO. No(Vendor A and C both satisfy all of the requirements)
Question 3 [color=#0f0f0f]Considering both the cost and the CEO's guidelines, which vendor can offer to complete the project at the lowest total cost?
[/color]Solution Vendor A
15 Feb 2025, 23:00
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1. Let's calculate the cost of the project for each vendor.
- Vendor A. Price Quote + Shipping + Spare Parts = $510000 + $10000 + $25000 = $545000.
- Vendor B. Price Quote + Shipping + Spare Parts = $470000 + $30000 + $20000 = $520000.
- Vendor C. Price Quote + Shipping + Spare Parts = $515000 + $15000 + $20000 = $550000.
- Vendor D. Price Quote + Shipping + Spare Parts = $490000 + $20000 + $23000 = $533000.
The lowest cost for the project comes from Vendor B.
2. Here, we have to check whether the following statements are true or false.
- The vendor offering the lowest quote for the project satisfies all of the CEO’s criteria. Vendor B has the lowest quote - $470000. However, it has only 1 Fortune 500 client recommendation when the CEO has a criteria of at least 2. So, this statement is false.
- All vendors satisfy the minimum criteria for net assets. Vendors A, B, C, and D have $50, $20, $10, and $12 million in net assets, respectively. The minimum requirement is $1.5 million. So, this statement is true.
- Only one vendor satisfies all of the criteria established by the CEO. Vendors A and C both work under the CEO criteria. So, this statement is false.
3. The question asks us to find the vendor that not only matches the CEO's guidelines but also have the least cost out of those that do. We know that vendors A and C are the only ones which fit the criteria. Each vendor has a cost of $545000 and $550000, respectively. $545000 < $550000. So, vendor A is the one that fits best.
- Vendor A. Price Quote + Shipping + Spare Parts = $510000 + $10000 + $25000 = $545000.
- Vendor B. Price Quote + Shipping + Spare Parts = $470000 + $30000 + $20000 = $520000.
- Vendor C. Price Quote + Shipping + Spare Parts = $515000 + $15000 + $20000 = $550000.
- Vendor D. Price Quote + Shipping + Spare Parts = $490000 + $20000 + $23000 = $533000.
The lowest cost for the project comes from Vendor B.
2. Here, we have to check whether the following statements are true or false.
- The vendor offering the lowest quote for the project satisfies all of the CEO’s criteria. Vendor B has the lowest quote - $470000. However, it has only 1 Fortune 500 client recommendation when the CEO has a criteria of at least 2. So, this statement is false.
- All vendors satisfy the minimum criteria for net assets. Vendors A, B, C, and D have $50, $20, $10, and $12 million in net assets, respectively. The minimum requirement is $1.5 million. So, this statement is true.
- Only one vendor satisfies all of the criteria established by the CEO. Vendors A and C both work under the CEO criteria. So, this statement is false.
3. The question asks us to find the vendor that not only matches the CEO's guidelines but also have the least cost out of those that do. We know that vendors A and C are the only ones which fit the criteria. Each vendor has a cost of $545000 and $550000, respectively. $545000 < $550000. So, vendor A is the one that fits best.
