The Green Machine Manufacturing Company is also trying to decide which of two suppliers to purchase engines from Green Machine has agreed to cover the tooling cost for the supplier selected. The relevant information is provided below.Carry all calculations out to two decimal places. Order lot size 1100 units Annual demand 85.000 units Engine weight Order processing cost Inventory carrying rate 55 pounds $50/order 3% per year Supplier 1 $315.00 $306.00 Supplier 2 $320.00 $309.00 Unit Price 1 to 999 units/order Unit Price 1000 to 2999 units/order Unit Price 3000+ units/order Tooling Cost $300.00 $305.00 $10.750 $13.500 210 miles Distance 225 miles Supplier defect rate 1% of engine cost) Truckload (TL>= 40,000 lbs): $1.05 per ton-mile Less-than-truckload (LTU): $1.75 perton-mile Note: per ton mile 2,000 pounds per mile) What is the total cost of ownership for Supplier 1? O Less than or equal to $85,000,000.00 O Greater than $85,000,000.00 but less than or equal to $86,000,000.00 O Greater than $86,000,000.00 but less than or equal to $87,000,000.00 O Greater than $87,000,000.00 but less than or equal to $88,000,000.00 O Greater than $88,000,000.00 What is the total cost of ownership for Supplier 2? Less than or equal to $85,000,000.00 Greater than $85,000,000.00 but less than or equal to $86,000,000.00 Greater than $86,000,000.00 but less than $87,000,00.00 Greater than $87,000,000.00 but less than $88,000,000.00 Greater than $88,000,000.00 The Green Machine Manufacturing Company has the option to make or buy a component part for one of its lawnmowers. The annual requirement is 45,000 units. A supplier is able to supply the parts for $10.00 per piece. Green Machine estimates that it will cost $1200 to prepare the contract with the supplier. To make the parts in-house, Green Machine must invest $85,000 in capital equipment. they estimate it will cost $7.50 per piece to produce the part in-house. Carry all calculations out to two decimal places. What is the breakeven quantity? O Less than or equal to 30,000 O Greater than 30,000 but less than or equal to 31,000 O Greater than 31,000 but less than or equal to 32,000 O Greater than 32,000 but less than or equal to 33,000 O Greater than 33,000 What is the total cost at the breakeven point? O Less than or equal to $330,000 O Greater than $330,000 but less than or equal to $335,000 Greater than $335,000 but less than or equal to $340,000 Greater than $340,000 If the demand is 45,000 units, should Green Machine make or buy the part? Buy the part O Make the part O Both O Neither Not enough information What is the cost savings from making the correct decision? Less than or equal to $20,000 O Greater than $20,000 but less than or equal to $25,000 O Greater than $25,000 but less than or equal to $30,000 Greater than $30,000 but less than or equal to $35,000 O Greater than $35,000
