Primo Caf sources electronics that control the on/off function and the timer on the Family Man from California Tech Inc. The old design for these electronics had created a bottleneck, forcing Primo Caf to use California Tech Inc. However, a new design has brought the electronics in line with industry standards, opening up the possibility of many new suppliers for this item. As of yesterday, California Tech charged Primo Caf $3 per unit. But today, California Tech called Marco to tell him that the new design would require $0.50 in tooling costs for each item and therefore they needed to increase their sell price to $4.15. You have the following unit cost information for electronics from California Tech Inc. from yesterday. You also have the following information from a potential new supplier, Boston Electric Company. Boston Electric has said they would be willing to sell you the electronics for $4.16 per unit. California Tech DM $ 0.27 DL $ 0.50 OH $ 0.55 Tooling $ COGS $ 1.32 SG&A $ 0.13 TC $ 1.45 Profit $ 1.55 Sell Price $ 3.00 Boston Electric DM $ 0.37 DL $ 0.65 OH $ 1.30 Tooling $ 0.20 COGS $ 2.52 SG&A $ 0.25 TC $ 2.77 Profit $ 1.39 Sell Price $ 4.16 You know the average overhead rate for this industry should be 120% and the average profit margin on these kinds of items should be around 50%, although not all suppliers apply these rates. Marco likes California Tech Inc. because they have been willing to accommodate changes in demand. California Tech has also had an excellent track record in terms of getting the electronics to Primo Caf on time. Marco doesn't know much about Boston Electric except for the cost information above and he is somewhat hesitant to make the switch to an unknown supplier for this part. Marco wants a recommendation on what Primo Caf should do. Given the information above - and what you know about the product you are sourcing - what would you recommend? Why? Be sure to apply the cost plus (should cost) framework from class to support your answer. Provide all calculations in your exam excel file