Wiring Harness Example Original Wire Quote Unit cost Packing cost Tooling ($6000/60000) Freight ($2.50/ Per unit Annual cost (60,000 units) TOTAL COST $31.10 $1,866,000 Happy Lucky Assembly Quote Per unit Annual cost (60,000 Subtotal units) $1,170,000 $120,000 Unit cost Packing cost Inland transport (3 container X $200 X $0.12 12 months) / 60000 Freight forward fee ($100/shipment X 12)/60000 $0.02 $1,200 Ocean transport ($4000/cont.) Marine Insurance ((5000 units X $6,600 21.5)/100)X$.50 US. Port Handling ($1200/cont.) $0.72 $43,200 Customs Duty (5% X $19.5) $0.98 Customs broker fees ($150) US Transport ($18.6/ units) $111,600 Warehouse Cost (($1.00/unit)/month)/2 $30,000 Cost of capital ($28.24 X (15%/6)) $0.71 $42,353 $28.24 Cost of hedging ($400/ $0.08 $4,800 Administrative time (4X/5000 $0.02 $1,200 Travel ($20000) $0.33 Tooling ($3000) $0.05 TOTAL COST $29.42 $1,765,453 Savings - HLA Quote $1.68 $100,547.50 5.39%