Question
This question is about Sanyo Case, similar to the case covered in class. Based on data below please answer the following question: If San-pod is
This question is about Sanyo Case, similar to the case covered in class. Based on data below please answer the following question: If San-pod is assembled in Mexico, what is the unit freight cost in shipping to Germany? Costs, demand, weight, and tariff data Annual demand for San-pod in Germany: 30,000 Annual demand for San-pod in USA: 10,000 Labor costs China ($): $3 per unit; Greece ($): $4.5 per unit; Mexico ($): $5 per unit Product weight per unit Assembled San-pod (g): 90 Part A from Malta (g): 50 Part B from Japan (g): 40 Product purchase price Part A FOB Malta ($ per unit): $10 Part B FOB Japan ($ per unit): $30 Tariff rates (%): Japan 6%; China 7%; Mexico 8%; USA 5%; Greece 7%; Germany 7% Combined rates for transportation and insurance between respective points (I&F $ per 100g) Malta to Greece: 0.6 Malta to China: 2.2 Malta to Mexico: 2.5 China to Germany: 2.3 China to USA: 2.75 Greece to Germany: 0.6 Greece to USA: 2.5 Mexico to Germany: 0.8 Japan to China: 0.8 Japan to Greece: 2.5 Mexico to USA: 0.4 Japan to Mexico: 2.3
A)$0.96
B)$0.80
C)$0.72
D)$0.68
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