Ricardo is buying electrical modules for his company based in Florida. He is purchasing 60,000 modules per year from Tha
Posted: Thu May 05, 2022 9:19 am
Ricardo is buying electrical modules for his company based in
Florida. He is purchasing 60,000 modules per year from Thailand at
$19.50 each and must pay a customs duty tax of 5% on each
unit. He must also consider costs associated with his
administrative time to manage this offshore supplier.
Administrative costs include 2 (five-day) visits per year to
Thailand at $10,000/visit to check on the supplier. Also,
each month’s purchase requires 4 hours to complete paperwork at
$25/hour. What would be Ricardo’s annual administrative costs
for managing this supplier?
Group of answer choices
$21,200
$1,200
$20,100
$10,000
$20,000
Florida. He is purchasing 60,000 modules per year from Thailand at
$19.50 each and must pay a customs duty tax of 5% on each
unit. He must also consider costs associated with his
administrative time to manage this offshore supplier.
Administrative costs include 2 (five-day) visits per year to
Thailand at $10,000/visit to check on the supplier. Also,
each month’s purchase requires 4 hours to complete paperwork at
$25/hour. What would be Ricardo’s annual administrative costs
for managing this supplier?
Group of answer choices
$21,200
$1,200
$20,100
$10,000
$20,000