1 Video Excel Online Structured Activity: Total Cost of Ownership Kuantan ATV, Inc. assembles five different models of all-terrain vehicles (ATV) from various ready-made components to serve the Las Vegas, Nevada, market. The company uses the same engine for all its ATVs. The purchasing manager, Ms. Jane Kim, needs to choose a supplier for engines for the coming year. Due to the size of the warehouse and other administrative restrictions, she must order the engines in lot sizes of 1,000 each. The unique characteristics of the standardized engine require special tooling to be used during the manufacturing process, Kuantan ATV agrees to reimburse the supplier for the tooling. This is a critical purchase, since late delivery of engines would disrupt production and cause 50 percent lost sales and 50 percent back orders of the ATVS. Jane has obtained quotes from two reliable suppliers but needs to know which supplier is more cost-effective. The terms of sale are 5/10 net 30 for Supplier 1 and 3/10 net 30 for Supplier 2. The data related to the costs of ownership associated with two reliable suppliers has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the questions below. X Rendsen Questions 1. What is the total cost of ownership for each of the suppliers? Assume the buyer will take advantage of the largest discount. Do not round intermediate | calculations. Round your answers to the nearest cent. Supplier 1 Supplier 2 Total $ $ 2. Which supplier is more cost-effective? Supplier 1 e D G 1 Total Cost of Ownership Analyse were forca Supplier 1505.00 SAMO 13.000 1000 24 ol ( Unit Price 1 por ser 1000 799 perder 3000 per Togo Tema De page per Delivery ang Support 5520.00 151100 1903 12.000 1 or 12.00 2014 Cow 1 190 22 19 ( Weight per engine Onder processing cost per onder watory carryingin per Coel of pery Proti marr Price of ATV andere Backer Levery lost Other information Truckload (10.000 Lased LTL) Periode Des per year In part period day Discount periode 14.00 11700 SON SON 12 13 14 15 ANA NA Serge Cashout Cadourtype Tong NA NA ANA 0905 NA 17 16 19 1:40 pm 2.000 bspermie VN YN Ofering com Cargo Oil Bachados Low ANA 30 10 DE ONA NA 21 22 23 24 25 MA Lost 1 Video Excel Online Structured Activity: Total Cost of Ownership Kuantan ATV, Inc. assembles five different models of all-terrain vehicles (ATV) from various ready-made components to serve the Las Vegas, Nevada, market. The company uses the same engine for all its ATVs. The purchasing manager, Ms. Jane Kim, needs to choose a supplier for engines for the coming year. Due to the size of the warehouse and other administrative restrictions, she must order the engines in lot sizes of 1,000 each. The unique characteristics of the standardized engine require special tooling to be used during the manufacturing process, Kuantan ATV agrees to reimburse the supplier for the tooling. This is a critical purchase, since late delivery of engines would disrupt production and cause 50 percent lost sales and 50 percent back orders of the ATVS. Jane has obtained quotes from two reliable suppliers but needs to know which supplier is more cost-effective. The terms of sale are 5/10 net 30 for Supplier 1 and 3/10 net 30 for Supplier 2. The data related to the costs of ownership associated with two reliable suppliers has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the questions below. X Rendsen Questions 1. What is the total cost of ownership for each of the suppliers? Assume the buyer will take advantage of the largest discount. Do not round intermediate | calculations. Round your answers to the nearest cent. Supplier 1 Supplier 2 Total $ $ 2. Which supplier is more cost-effective? Supplier 1 e D G 1 Total Cost of Ownership Analyse were forca Supplier 1505.00 SAMO 13.000 1000 24 ol ( Unit Price 1 por ser 1000 799 perder 3000 per Togo Tema De page per Delivery ang Support 5520.00 151100 1903 12.000 1 or 12.00 2014 Cow 1 190 22 19 ( Weight per engine Onder processing cost per onder watory carryingin per Coel of pery Proti marr Price of ATV andere Backer Levery lost Other information Truckload (10.000 Lased LTL) Periode Des per year In part period day Discount periode 14.00 11700 SON SON 12 13 14 15 ANA NA Serge Cashout Cadourtype Tong NA NA ANA 0905 NA 17 16 19 1:40 pm 2.000 bspermie VN YN Ofering com Cargo Oil Bachados Low ANA 30 10 DE ONA NA 21 22 23 24 25 MA Lost