Vendors' costs are important to a purchasing agent because: a. they help in estimating a fair price b. they help in negotiating a fair price c. cost determines market price d. a vendor is entitled to a profit just because he is in business e. a and b above.

 e. a and b above

Explanation:

Vendors are those that a company buys goods from for sale. These goods are usually bought in bulk at wholesale prices then sold at a mark-up.

In such a situation it would very important to know the cost that the Vendors incur as it would enable the purchasing agent to estimate a price that they believe will be fair to both parties in that it would ensure adequate profit for the vendor as well as a cheaper price for the buyer.

Upon estimating this price, the purchasing agent will then be able to negotiate this price or any other price deemed to be fair.