A Supplier Signs an Agreement with a Customer That States

Multiple Choice

A supplier signs an agreement with a customer that states that $350,000 in savings will be earned by the customer over the next 18 months in exchange for a tenfold increase in the customer's share of supplies ordered by the customer. If the supplier achieves less than this promised savings, it will make up the difference. If the supplier achieves substantially more than promised, it participates in the extra savings. This is an example of ________.

A) solution selling
B) price fixing
C) demand shifting
D) systems buying
E) risk and gain sharing