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A company currently produces an electric motor at its main manufacturing facility in Dayton, Ohio. The motor's cost when produced at the Dayton plant is
A company currently produces an electric motor at its main manufacturing facility in Dayton, Ohio. The motor's cost when produced at the Dayton plant is $110.88 per motor. The company is currently considering outsourcing production to either a pant in Mexico or a plant in ndonesia. The company believes that producing he motor in Mexico wil result in additional overhead o 10% o the motor's cost to produce t in Dayton. Furthermore for motors produced in Mexico, the need for additional inventory will probably add $3.73 to each motors cost, and lower quality will probably cost approximately $4.43. Shipping from Mexico will increase cost by $3.24 per motor. The cost of the motor produced in Mexico will be $98.37. If the motor is produced in Indonesia it will cost S88.03. The company estimates that the shipping cost from Indonesia will be $5.16 per motor, and the costs of additional inventory and The total cost of outsourcing to Mexico is (Enteryour response rounded to two decimal places)
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