Can anyone help answer this?

You work as a supply chain manager for Primo Caf Inc. Primo Caf is a small-sized manufacturer of stylish coffee makers. The company has three distinct coffee makers that it produces. QUESTION #5 The Bean Boiler is Primo Caf's most basic model. The main materials used in manufacturing the Bean Boiler are aluminum and plastic. There are lots of suppliers for these materials. At present, Primo Caf's total cost for producing a Bean Boiler is $13 per unit and the product is competitively priced at $20 per unit. There are lots of other coffee makers that are very similar to the Bean Boiler on the market. Still, sales of the Bean Boiler are very stable. The company reliably sells 24,625 to 25,375 units of this product per month. Primo Caf has long relationship with Techno-Gadgets Limited to produce the temperature and pressure gauges that go into the Caffissimo. However, Techno-Gadgets recently underwent an ownership change and since then the quality of their products has declined. lise, Primo's CEO and founder, is in negotiations with Techno-Gadgets to resolve the issue, but in the meantime, you have been tasked with looking for new potential suppliers. Your search has lead you to two overseas companies: Tokyo Techtonics Inc. and Allesgute Engineering GmbH. Tokyo Tectonics Inc. is located in Japan and quotes you price of 12.00 (15 Japanese Yen) per gauge. Allesgute Engineering GmbH is located in Germany and quotes you a price of 12.00 (15 Euro) per gauge. In order to help determine which company has the best cost structure, you have collected the following information. Current USD/JPY exchange rate: $1 = $1.50 Expected USD/JPY exchange rate in six months: $1 = 1.20 The Family Man is Primo Caf's mid-market offering. Primo Caf manufactures most of the Family Man in-house, but buys the glass pot and the electronics that control the on/off function and the timer. At present, final assembly of the in- house manufactured parts and the purchased sub-components occurs at Primo Caf's facility in Grand Rapids. Total cost for producing the Family Man is currently $32 per unit and each unit is sold for $34.99. The Family Man's sleek, artistic design and range of unique colors helps to distinguish it from a wide selection of similar products offered by competitors. Prices for direct competitors range from $25 to $45. Sales of the Family Man range from 19,400 to 20,600 units per month. Current USD/EUR exchange rate: $1 = 0.8 Expected USD/EUR exchange rate in six months: $1 = 1.20 Additional Costs Shipping to port of export Ocean freight Duties on imports Transportation to warehouse Tokyo Tectonics Inc. $ 4.25 $ 30.25 $ 1.50 $ 3.75 Allesgute Engineering GmbH $ 5.30 $ 27.50 $ 1.80 $ 3.00 The Caffissimo is Primo Caf's high-end offering. Primo Caf produces the external casing for the Caffissimo in-house, but buys all of the important sub- components from external suppliers. The most important sub-components for the Caffissimo are the gauges that regulate the temperature and pressure of the water as it is forced through the coffee grounds. The proper working of these gauges ensure that the Caffissimo produces a perfect cup of coffee at brewing. The Caffissimo's design is a closely held company secret. The machine has won industry awards both in terms of its coffee making process and its external looks. Currently, the Caffissimo costs $375 to produce and sells for $600. Because of the relatively high price and unique design, demand for the Caffissimo is difficult to predict. Over the past year, demand has ranged from 8,500 to 11,500 units per month. Marco wants to move quickly and lock up a contract with Allesgute Engineering immediately. lise is inclined to give Techno-Gadgets six months to resolve its issues. At that point, she is interested in inking a deal with Tokyo Tectonics. Apply exchange rate calculations as presented in class to complete the question below. Complete all calculations in the excel file that you will upload with your exam. 1. Calculate the current and future total cost for each supplier in USD. 2. Marco wants a recommendation on what Primo Caf should do. Given the information above- and what you know about the product you are sourcing - what would you recommend? Why? You work as a supply chain manager for Primo Caf Inc. Primo Caf is a small-sized manufacturer of stylish coffee makers. The company has three distinct coffee makers that it produces. QUESTION #5 The Bean Boiler is Primo Caf's most basic model. The main materials used in manufacturing the Bean Boiler are aluminum and plastic. There are lots of suppliers for these materials. At present, Primo Caf's total cost for producing a Bean Boiler is $13 per unit and the product is competitively priced at $20 per unit. There are lots of other coffee makers that are very similar to the Bean Boiler on the market. Still, sales of the Bean Boiler are very stable. The company reliably sells 24,625 to 25,375 units of this product per month. Primo Caf has long relationship with Techno-Gadgets Limited to produce the temperature and pressure gauges that go into the Caffissimo. However, Techno-Gadgets recently underwent an ownership change and since then the quality of their products has declined. lise, Primo's CEO and founder, is in negotiations with Techno-Gadgets to resolve the issue, but in the meantime, you have been tasked with looking for new potential suppliers. Your search has lead you to two overseas companies: Tokyo Techtonics Inc. and Allesgute Engineering GmbH. Tokyo Tectonics Inc. is located in Japan and quotes you price of 12.00 (15 Japanese Yen) per gauge. Allesgute Engineering GmbH is located in Germany and quotes you a price of 12.00 (15 Euro) per gauge. In order to help determine which company has the best cost structure, you have collected the following information. Current USD/JPY exchange rate: $1 = $1.50 Expected USD/JPY exchange rate in six months: $1 = 1.20 The Family Man is Primo Caf's mid-market offering. Primo Caf manufactures most of the Family Man in-house, but buys the glass pot and the electronics that control the on/off function and the timer. At present, final assembly of the in- house manufactured parts and the purchased sub-components occurs at Primo Caf's facility in Grand Rapids. Total cost for producing the Family Man is currently $32 per unit and each unit is sold for $34.99. The Family Man's sleek, artistic design and range of unique colors helps to distinguish it from a wide selection of similar products offered by competitors. Prices for direct competitors range from $25 to $45. Sales of the Family Man range from 19,400 to 20,600 units per month. Current USD/EUR exchange rate: $1 = 0.8 Expected USD/EUR exchange rate in six months: $1 = 1.20 Additional Costs Shipping to port of export Ocean freight Duties on imports Transportation to warehouse Tokyo Tectonics Inc. $ 4.25 $ 30.25 $ 1.50 $ 3.75 Allesgute Engineering GmbH $ 5.30 $ 27.50 $ 1.80 $ 3.00 The Caffissimo is Primo Caf's high-end offering. Primo Caf produces the external casing for the Caffissimo in-house, but buys all of the important sub- components from external suppliers. The most important sub-components for the Caffissimo are the gauges that regulate the temperature and pressure of the water as it is forced through the coffee grounds. The proper working of these gauges ensure that the Caffissimo produces a perfect cup of coffee at brewing. The Caffissimo's design is a closely held company secret. The machine has won industry awards both in terms of its coffee making process and its external looks. Currently, the Caffissimo costs $375 to produce and sells for $600. Because of the relatively high price and unique design, demand for the Caffissimo is difficult to predict. Over the past year, demand has ranged from 8,500 to 11,500 units per month. Marco wants to move quickly and lock up a contract with Allesgute Engineering immediately. lise is inclined to give Techno-Gadgets six months to resolve its issues. At that point, she is interested in inking a deal with Tokyo Tectonics. Apply exchange rate calculations as presented in class to complete the question below. Complete all calculations in the excel file that you will upload with your exam. 1. Calculate the current and future total cost for each supplier in USD. 2. Marco wants a recommendation on what Primo Caf should do. Given the information above- and what you know about the product you are sourcing - what would you recommend? Why