Question 1 Based on the information provided, the purchase cost for Altman Electronics would be $(3.00 X 100,000) = $300,000. On the other hand, for Crestwell Lights, it would be $(2.70 X 100,000) = $270,000. Question 2 In spite of the above, there would be about 5% defect rate among the bulbs purchased from Altman Electronics. Accordingly, the warranty replacement cost for this supplier would be; $(0.05 X 100,000 X 3.0) = $15,000 On the […]