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Current cost to source from the home plant to Country A is $0.55 per unit, plus $0.02 in shipping (there is no tariff). If product
Current cost to source from the home plant to Country A is $0.55 per unit, plus $0.02 in shipping (there is no tariff). If product is sourced from Country B manufacturing cost is expected to be 20% lower, but shipping will increase to $0.06 and there is a tariff of 15%. What will the savings be on 100 million units if sourcing for Country A switches from the home plant to Country B? No savings $3 million $7 million $20 million
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