Question 1 Your company makes snow blowers and this winter they have been selling very well. You are evaluating a quote from a supplier for engines that power your snow blowers. The quote is as follows: Price Terms Distance Minimum order quantity Weight Supplier 1 $90 2% 10 Net 45 200 1500 20 lbs Assume the following: Annual volume for engines is expected to be 90,000 units The price is constant regardless of volume or order quantity Inventory holding rate is 25% Working capital costs are 12% Your order quantity will always equal the minimum order quantity for the supplier Your freight rate is $1.75 per ton mile for a full truckload (40,000 lbs) and $2.00 for a less-than- truckload shipment There are 360 days in a year. There are 2000 lbs/ton Order costs, tooling costs, quality costs, late-delivery costs should be ignored. What is the total cost of ownership for supplier 1? (Show all your work.)