Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Gomez runs a small engine manufacturing business in his New orleans plans, wat recent increase in global disruption, he is faced with the decision of

image text in transcribed
image text in transcribed
image text in transcribed
Gomez runs a small engine manufacturing business in his New orleans plans, wat recent increase in global disruption, he is faced with the decision of selecting a Ile has a new found to select between a domestic supplier and oversea supplier decidod to a with thve oversea supplier. The following data represent the cost Mr. Gomez will incur if he chooses this supplier Assume that the oversea supplier use resources at cost as follows: Table 1. Oversea supplier Annual warehouse rental $20,000.00 Payment for material $15,000.00 Borrowed S300,000 15% interest Electricity, phone & internet services $5000.00 Bought machine S185,000.00 Employs 2000 labor a S30.00 per labor Quantity of good sold will be 1,000 units (a s400.00/unit. 1. Given the information table I above, if the overseas supplier has a 025% chance of failing to deliver the product: a How much is Mr. Gomez Total Fixed Costifhe chooses this oversea supplier (5points)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing An Assertions Approach

Authors: G. William Glezen, Donald H. Taylor

7th Edition

047113421X, 978-0471134213

More Books

Students also viewed these Accounting questions

Question

What is the size of the COTS product user base?

Answered: 1 week ago