goods times the cost of the capital times the days in transit divided by 365, as represented below: Time in Transit Cost = (value of goods per shipment x cost of capital in percent) x (days in transit / 365) ASSIGNMENT As a materials manager for QuestOne, Inc., you are responsible for all transportation, distribution, materials and purchasing for this multi-national firm. The company has just embarked upon a new venture which will involve moving highly specialized electronic components from Singapore to Oakland, California. You will choose between two modes of transportation: 1) water, which takes 23 days door to door, and 2) air, which takes 6 days door to door. QuestOne will be paid for the goods when they arrive at the receiver's distribution center in Seattle. You will make the decision based upon the following costs: . Freight by water is $2,750 with delivery to the dock in Singapore costing $433. At Oakland the dock-to-plant delivery costs $330. The air cargo linehaul is $7,552. Delivery to the airport in Singapore costs $394, and delivery from Oakland International Airport to the distribution center costs $485. Documentation using the water mode is $218 whereas documentation using air is $317. . Insurance by water costs $808; insurance by air would be $526. Packing and carting to protect the cargo on the water transport would cost $632 per shipment. A similar service to place the cargo in a secure air container would cost $499. . The company cost of capital is 5 percent. . The value of the goods is $251,000 per shipment, In-transit Costs Water (23 Days) Air (6 Days) Freight Pickup Delivery Documentation Insurance Packing/carting Time in transit Total Cost NOTE: Time in Transit Cost = (value of goods per shipment x cost of capital in percent) (days in transit/365) 1. Using the information provided, fill in the table above and calculate the total cost of each method of shipping. (15 points) 2. How much does each day in transit cost QuestOne if the shipment goes by water? How much does each day in transit cost QuestOne if the shipment goes by air? (2 points) NOTE: Time in Transit Cost per day = Time in Transit Cost / days in transit 3. Which mode of transportation would you select? Why? (3 points)