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 $\frac{4}{10}$ 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.

Open spreadsheet

Questions

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.

Which supplier is more cost$-$effective?