Excel Online Structured Activity: Total Cost of Ownership Kuantan ATV, Inc. assembles five different models of all-terrain vehicles (ATVs) from various ready-made components to serve the Las Vegas, Nevada, market. The company uses the same engine for all its ATVs. The purchasing manager, Ms. Jane Kim, needs to choose a supplier for engines for the coming year. Due to the size of the warehouse and other administrative restrictions, she must order the engines in lot sizes of 1,000 each. The unique characteristics of the standardized engine require special tooling to be used during the manufacturing process, Kuantan ATV agrees to reimburse the supplier for the tooling. This is a critical purchase, since late delivery of engines would disrupt production and cause 50 percent lost sales and 50 percent back orders of the ATVS. Jane has obtained quotes from two reliable suppliers but needs to know which supplier is more cost-effective. The terms of sale are 5/10 net 30 for Supplier 1 and 3/10 net 30 for Supplier 2. The data related to the costs of ownership associated with two reliable suppliers has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the questions below. HHH Den spreadshest Questions 1. What is the total cost of ownership for each of the suppliers? Assume the buyer will take advantage of the largest discount. Do not round intermediate calculations. Round your answers to the nearest cent. Supplier 1 Supplier 2 $ Total 2. Which supplier is more cost-effective? Supplier 1 e D Total Cost of Ownership Analysis Price order ng fupera 0.00 S488 1000 $5.2000 351100 B01 13.000 1000 24 112500 209 10 Los 10 Wegene Order procesos perder Inwarrington Congyan Tong 000 22.000 00 M 100 10 11 M PAT ) vey Ring 14.00 $1700 www 15 61 sos NA Cash who NA 15 16 12 18 we NA Other Informa Tri Dhe Land) Days pery Inace payment Discounted 106 11.40 2.000 Orange Cargo Olycom Y va 30 10 NA INA ANA NA IND ARRARA Excel Online Structured Activity: Total Cost of Ownership Kuantan ATV, Inc. assembles five different models of all-terrain vehicles (ATVs) from various ready-made components to serve the Las Vegas, Nevada, market. The company uses the same engine for all its ATVs. The purchasing manager, Ms. Jane Kim, needs to choose a supplier for engines for the coming year. Due to the size of the warehouse and other administrative restrictions, she must order the engines in lot sizes of 1,000 each. The unique characteristics of the standardized engine require special tooling to be used during the manufacturing process, Kuantan ATV agrees to reimburse the supplier for the tooling. This is a critical purchase, since late delivery of engines would disrupt production and cause 50 percent lost sales and 50 percent back orders of the ATVS. Jane has obtained quotes from two reliable suppliers but needs to know which supplier is more cost-effective. The terms of sale are 5/10 net 30 for Supplier 1 and 3/10 net 30 for Supplier 2. The data related to the costs of ownership associated with two reliable suppliers has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the questions below. HHH Den spreadshest Questions 1. What is the total cost of ownership for each of the suppliers? Assume the buyer will take advantage of the largest discount. Do not round intermediate calculations. Round your answers to the nearest cent. Supplier 1 Supplier 2 $ Total 2. Which supplier is more cost-effective? Supplier 1 e D Total Cost of Ownership Analysis Price order ng fupera 0.00 S488 1000 $5.2000 351100 B01 13.000 1000 24 112500 209 10 Los 10 Wegene Order procesos perder Inwarrington Congyan Tong 000 22.000 00 M 100 10 11 M PAT ) vey Ring 14.00 $1700 www 15 61 sos NA Cash who NA 15 16 12 18 we NA Other Informa Tri Dhe Land) Days pery Inace payment Discounted 106 11.40 2.000 Orange Cargo Olycom Y va 30 10 NA INA ANA NA IND ARRARA
