Answer Happy

Northcutt manufactures high-end racing bikes and is looking for a source of gear sprocket sets. Northcutt would need 1,650 sets a month, Supplier A is a domestic firm, and Suppliers and C are located overseas. Cost information for the suppliers is as follows: •Supplier A-Price of $60 per set, plus packing cost of $2.50 per set. Total inland freight costs for all 1,650 units would be $900 per month. •Supplier B-Price of $100 per set, plus packing cost of $2.50 per set. International transportation costs would total $3,200 per month, while total inland freight costs would be $650 per month. • Supplier C-Price of $59 per set, plus packing cost of $1,50 per set. International transportation costs would total $5,100 per month, while total inland freight costs would be $800 per month. a. The total landed cost per unit for Supplier A is $104025 (Enter your response rounded to two decimal places.)
a. The total landed cost per unit for Supplier A is $ (Enter your response rounded to two decimal places.) The total landed cost per month for Supplier A is $. (Enter your response as a whole number.) The total landed cost per unit for Supplier B is $. (Enter your response rounded to two decimal places.) The total landed cost per month for Supplier B is $ (Enter your response as a whole number.) The total landed cost per unit for Supplier C is (Enter your response rounded to two decimal places.) The total landed cost per month for Supplier C is $ (Enter your response as a whole number.) Supplier is the least expensive. Supplier is the most expensive. b. Suppose that international and inland freight costs are fixed for volumes up to 4,000 units a month. Supplier has the lowest landed cost if demand was cut in half. Supplier has the lowest landed cost if demand is doubled. The landed cost of Supplier is most sensitive to volume changes.