What is the forecast for office supplies after management decided to switch suppliers and save money?

Prepare for the Ontario PHBI Financial Planning and Management Test. Study with flashcards and multiple choice questions, each with hints and explanations. Ensure your success with adequate preparation!

The forecast for office supplies reflecting management's decision to switch suppliers and save money is $2,550. This figure indicates the anticipated cost after evaluating the new supplier's pricing, which presumably provides the same quality and quantity of supplies at a reduced rate compared to the previous supplier.

The process of switching suppliers likely involved thorough analysis, leading to a cost that is lower than what was previously spent, which is essential in effective financial management. By optimizing supplier costs, the organization can allocate savings toward other critical areas, thus improving overall operational efficiency.

The amount of $2,550 specifically represents the projected expenditure that balances affordability with the necessary supply levels required for ongoing operations. Meanwhile, the other figures do not align with the expected financial benefits that would typically be anticipated from switching suppliers, as they may suggest either an increase in cost or an unrealistic saving that does not consider the factors affecting supply pricing.

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