Hospitality LLP is a nationwide owner of office space in India with sprawling office buildings in business districts of several cities. They rent this space to individual companies. Hospitality office spaces vary from small offices to large suites with every space having custom-designed wall-to-wall carpeting. Many locations of Hospitality are in need to replacement of the carpet. Jupiter Carpets has submitted the winning bid which is an all-inclusive contract with 3 years warranty. Jupiter executives as well as independent consultants they hired felt that Jupiter would be able to perform all these services for far less than their bid price leading to a considerable profit
Which of the following, if true, will actually counter the argument that Jupiter will make a large profit from this contract with Hospitality?1
All the carpets will have to be transported by train from Jupiter in Mirzapur, to Hospitality’s locations spread all over India.
2
Jupiter has already supplied carpets to a number of restaurant chains with some of those spaces are as large as Hospitality’s largest office spaces.
3
Lot of cutting will be required to fit the carpets made in standard size by Jupiter leading to wastage.
4
Jupiter carpet material degrade rapidly when it comes into contact with standard toner used in most laser printers and photocopiers leading to frequent replacements.