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Calculate total landed costs per unit and per month for the three potential suppliers. Who is the cheapest? Who is the most expensive? Northcutt manufactures
Calculate total landed costs per unit and per month for the three potential suppliers. Who is the cheapest? Who is the most expensive?
Northcutt manufactures high-end racing bikes and is looking for a source of gear sprocket sets. Northcutt would need 1,650 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 1,650 units would be $750 per month. Supplier BPrice of $79 per set, plus packing cost of $2.00 per set. International transportation costs would total $3,400 per month, while total inland freight costs would be $900 per month. Supplier CPrice of $67 per set, plus packing cost of $2.00 per set. International transportation costs would total $5,300 per month, while total inland freight costs would be $950 per monthStep by Step Solution
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