After investigating the cost breakdown, Mr.Travis wondered why the other five responsive quotes were significantly higher than the Bell and D&G quotes. He decided to call San Onofre Technologies (SOT) to discuss their $29.78 quote. After his conversation he reevaluated the SOT quote, The SOT cost breakdown is given below
Required
1. What factors might have caused the variance between D&G Technologies' quotation and Mr.Travis's estimate? Between D&G Technologies' quotation and Bell Systems' quotation? Between SOT and the two lowest quotes?
2. In light of your answer to the above question,what conclusions can you dreaw concerning (a) the reliability and usefulness of cost estimates made by the buyer and (b) the value to be gained from the comparison of one supplier's quotation with the others?
3. Write a two-page memo justifying your recommendations