Answered step by step
Verified Expert Solution
Question
1 Approved Answer
LB Family Farms, located in California, offers oranges at a purchase price of $1.23 per pound. The oranges are shipped FOB Shipping Point to your
LB Family Farms, located in California, offers oranges at a purchase price of $1.23 per pound. The oranges are shipped FOB Shipping Point to your facility via motor carrier (TL) at a rate of $155 per load. After arriving at your facility, you've calculated receiving and quality costs at $6.00 per pallet. You estimate that 1.5% of the truckload of oranges will spoil and 1% will be wasted in transport. The administrative costs to successfully manage the relationship between LB Family Farms and your organization are estimated to be approximately 4% of the value of a truckload of shipped oranges. Each case of oranges is 25 pounds, with 40 cases per pallet and 25 pallets per truckload. Naranja International, located in South Africa, offers oranges at a purchase price of $1.03 per pound. First, the oranges need to be shipped to the USA via waterway. The ocean freight costs are $3,500 per container and the import duties from South Africa are 3% of the value of shipped oranges. Once arriving at the port of Long Beach, California, drayage costs are \$275 per container. You momentarily store the oranges at a local warehouse at a rate of $6.00 per pallet. The container is picked up the next day and travels intermodal (through a motor carrier) to your facility at a cost of $160 per container. Upon arrival at your facility, you've calculated costs of $6.00 per pallet for receiving and quality. Based on historical averages, 2% of your container of oranges will spoil and 3% will be wasted in transport. The administrative costs to successfully manage a relationship between your organization and Naranja International are estimated at 9% of the value of a container of shipped oranges. These costs account for the intricacies of dealing with an offshored supplier on a different continent, with a different language and culture than what is found at Smoothie City headquarters. Each case of oranges is 25 pounds, with 40 cases per pallet and 15 pallets per container. Using the data from the "INFORMATION" sheet, you will input cost informa tion for both Naranja International and LB Family Farms. First, put given Units \& Ratios information into the tables. Use formulas to fill out the remainder of the Units \& Ratios tables. For example, multiply the weight per case by the number of cases per pallet to find the weight per pallet. Next, input cost information in the "Costs Given" columns. You are given costs in all different units. You must standardize the units to analyze the data. Write functions to palletize the costs. For example, if you're given cost per pound, write a function to multiply that cost by number of pounds in a pallet. Sum your palletized costs to find TLC per pallet. Write formulas to find TLC per container and TLC per pound. After completing calculations, complete the assignment on the "QUESTIONS" sheet
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started