The costs associated with producing, distributing, and selling a domestically produced automotive component to Honda in Japan can be summarized as follows:

Transportation costs vary as follows. If the purchase (shipping) quantity is 1,000 units or less, the transportation cost is $5 per unit. For more than 1,000 units but less than or equal to 2,000 units, the transportation cost is $4.00 per unit. For more than 2,000, the transportation cost is $3.00 per unit.
Construct a price schedule, assuming the vendor would like to pass the transportation economies on to the customer. Indicate the discount percentage the customer will receive through buying at various quantities.

Transcribed Image Text:

Cost Type Cost per Unit, S 25 10 Purchased materials Manufacturing labor Overheacd Transportation Varies by shipment size Sales Profit