Answered step by step
Verified Expert Solution
Question
1 Approved Answer
A stereo speaker company is analyzing the total costs of importing goods into the U.S., including expenses incurred once in the country. The following table
A stereo speaker company is analyzing the total costs of importing goods into the U.S., including expenses incurred once in the country. The following table provides the cost information for two options to import the speakers in dollars. The speakers are shipped in containers, and each container has a designed capacity of 300 units of the speakers. Assume the company aims at lowering the total cost. Option 1: Import from China Option 2: Import from Mexico Unit cost: Ex works factory 161 Inland freight cost per container 11,150 650 Ocean freight cost per container3 .100 poo l Export handling per container 200 230 Import clearance per container 240 |115 Inland to Chicago per container 805 Inland to customers per container 70 235 dollars (round the a) [3 points) The landed cost per unit for Option 1 is Number numbers to two decimal places if needed). dollars (round the b) [3 points] The landed cost per unit for Option 2 is Number numbers to two decimal places if needed). The company is testing different container sizes with varying capacities. In other words, new containers might be able to include more than or less than 300 units of speakers. Assume that all the cost information provided in the table will keep the same. Identify the range of the capacity of containers over which each option is better. - c) (3 points) Option 1 is better when the capacity of containers is Click for List Number units (round the numbers to the nearest whole number). c) (3 points] Option 2 is better when the capacity of containers is Click for List Number units (round the numbers to the nearest whole number)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started