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2. Also, given the information in table I above, if the oversea supplier has a 025% chance of failing to deliver the product: How much
2. Also, given the information in table I above, if the oversea supplier has a 025% chance of failing to deliver the product: How much is Total Fixed Cost? (3points) a. How much is Total Variable Cost? (4points) b. c How much is the Total Revenue? (2points) d. What is the expected value of his profit? (15points) Based on your calculations, which supplier would you recommend for Mr. Gomez to do business with. And why? EXPLAIN. (5points). e. 1. Gomez runs a small engine manufacturing business in his New Orleans plant. With recent increase in global disruption, he is faced with the decision of selecting a supplier. He has a new found idea to select between a domestic supplier and oversea supplier. The following data represent the cost Mr. Gomez will incur if he chooses either of the supplier. Assume that both suppliers use similar resources at cost as follows and products supplied are identical and they sell 1,000 units at $400.00 each. Table:1 Domestic Supplier Oversea Supplier Annual warehouse rental $20,000.00 Payment for material $15,000.00 Borrowed $300,000 a l 5% interest Annual warehouse rental $20,000.00 Payment for material $27,000.00 Borrowed $300.000 @ 15% interest Electricity, phone&internet services $3000.00 Electricity, phone & internet services $5000.00 Bought machine $185,000.00 Employs 4000 labor @ $25.00 per labor Bought machine $185,000.00 Employs 2000 labor a $30.00 per labor Given the above information in table 1 above, if the domestic supplier has a failure probability of .025 to deliver the product: How much is Total Fixed Cost? (6 points) List and itemize the fixed input and cost. a
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