Turner Inc

Multiple Choice

Turner Inc. is a factory that creates laptop bags that contain an added sleeve for increased protection. The sewing department is currently debating on the best way to proceed with sourcing the materials needed to create the end product. As compared to purchasing internally, what is most likely to impact a potential price with an external vendor?

A) High management turnover at the external vendor's location has caused labor costs to increase overall.
B) The minimum selling price that the buyer is willing to pay would impact what the external vendor may charge.
C) The negotiation abilities of the manager arranging the deal with the external vendor will have the greatest impact.
D) Whether the internal department has any idle capacity or not would have the greatest impact on the minimum acceptable transfer price.