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Northcutt manufactures high-end racing bikes and is looking for a source of gear sprocket sets. Northcutt would need 1,550 sets a month. Supplier A is
Northcutt manufactures high-end racing bikes and is looking for a source of gear sprocket sets. Northcutt would need 1,550 sets a month. Supplier A is a domestic firm, and Suppliers B and C are located overseas. Cost information for the suppliers is as follows: Supplier A-Price of $100 per set, plus packing cost of $2.00 per set. Total inland freight costs for all 1,550 units would be $800 per month Supplier B Price of $96 per set, plus packing cost of $3.50 per set. International transportation costs would total $3,500 per month, while total inland freight costs would be $800 per month Supplier C-Price of $93 per set, plus packing cost of $3.00 per set. International transportation costs would total $5,000 per month, while total inland freight costs would be $1,000 per month. a. The total landed cost per unit for Supplier A is S(Enter your response rounded to two decimal places.) The total landed cost per month for Supplier A is $(Enter your response as a whole number.) The total landed cost per unit for Suppler B is -Enter your response rounded to two decimal places.) The total landed cost per month for Supplier B is (Enter your response as a whole number.) The total landed cost per unit for Supplier C is $1 . (Enter your response rounded to two decimal places.) The total landed cost per month for Supplier C is $ (Enter your response as a whole number.) Supplier is the least expensive. Supplieris the most expensive b. Suppose that international and inland freight costs are fixed for volumes up to 4,000 units a month Supplierhas the lowest landed cost if demand was cut in half. Supplierhas the lowest landed cost if demand is doubled The landed cost of Supplier is most sensitive to volume changes
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