One of ValuTech's Objectives for the Year Is to Bring

Multiple Choice

One of ValuTech's objectives for the year is to bring down the firm's production costs by 5 percent. To meet this objective, managers have suggested the following alternatives:
(1) Use alternate suppliers who can provide raw materials at a lower cost.
(2) Adopt cutting-edge technology that makes the production process more efficient.
-What is the underlying assumption in the first alternative?

A) Customers associate high prices with high quality and vice versa.
B) Customers are more quality conscious than price sensitive.
C) Low-cost raw materials will not affect the overall quality of the final product.
D) The company's relationship with its current suppliers is strong.