Todd Silver is the purchasing agent for Moore Co. One of his suppliers, Gem Co. offers Todd a free vacation to France if he buys at least 75% of Moore's supplies from Gem Co. Todd, who was angry because Moore Co. has not given him a raise in over a year, is considering the offer. Write your recommendation to Todd.

Ethically the offer made by Gem Co. is not suitable because Todd will buy 75% of the Moore Co. supplies from Gem Co. which could be of low quality and or expensive because if Todd accepts the offer Gem Co. would know that Todd will purchase 75% of supplies from Gem Co. and not from any other supplier so the quality and cost can be varied easily and no complaint will be made by Todd, but this can cause Todd to lose his job at Moore Co. and ethically breaching his duties of professional behavior and due care.

Explanation:

Ethically the offer made by Gem Co. is not suitable because Todd will buy 75% of the Moore Co. supplies from Gem Co. which could be of low quality and or expensive because if Todd accepts the offer Gem Co. would know that Todd will purchase 75% of supplies from Gem Co. and not from any other supplier so the quality and cost can be varied easily and no complaint will be made by Todd, but this can cause Todd to lose his job at Moore Co. and ethically breaching his duties of professional behavior and due care.

answer/// equals both average variable cost and average total cost at their respective minimums;