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Question Help Northcutt manufactures high-end racing bikes and is looking for a

ID: 335091 • Letter: Q

Question

Question Help Northcutt manufactures high-end racing bikes and is looking for a source of gear sprocket sets. Northcutt would need 1,350 sets a month. Supplier A is a domestic firm, and Suppliers B and C are located overseas. Cost information for the suppliers is as follows Supplier A-Price of $90 per set, plus packing cost of $3.00 per set. Total inland freight costs for all 1,350 units would be $650 per month Supplier B-Price of $137 per set, plus packing cost of $4.50 per set. International transportation costs would total $3,900 per month, while total inland freight costs would be S950 per month Supplier C-Price of $74 per set, plus packing cost of $4.50 per set. International transportation costs would total $4,900 per month, while total inland freight costs would be $950 per month. a. The total landed cost per unit for Supplier A is s(Enter your response rounded to two decimal places) The total landed cost per month for Supplier A is S(Enter your response as a whole number) The total landed cost per unit for Supplier B is S(Enter your response rounded to two decimal places) The total landed cost per month for Supplier B is S(Enter your response as a whole number) The total landed cost per unit for Supplier C is sEnter your response rounded to two decimal places) The total landed cost per month for Supplier C is S(Enter your response as a whole number) Supplieris the least expensive Supplier ?| is the most expensive Enter your answer in each of the answer boxes. 11:15 PM O Type here to search

Explanation / Answer

a- Landed cost per month of supplier A= 1350*90+1350*3+650= $126,200

-Landed cost per unit of supplier A= 126,200/1350= $93.48

-Landed cost per month of supplier B= 1350*137+1350*4.50+3900+950= $195,875

-Landed cost per unit of supplier B= 195,875/1350= $145.09

-Landed cost per month of supplier C= 1350*74+1350*4.50+4900+950= $111,825

-Landed cost per unit of supplier C= 111,825/1350= $82.83

Supplier C is least expensive

Supplier B is most expensive

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