Calculate total landed costs per unit

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Reference no: EM131667528

Northcutt manufactures high-end racing bikes and is looking for a source of gear sprocket sets. Northcutt would need 1,550 sets each month. Supplier A is a domestic firm, Suppliers B and C are located overseas. Cost information for each supplier is as follows:

Supplier A: Price of $100 per set, plus packing cos of $3.50 per set. Total inland freight costs for all 1,550 units would be $800 per month.

Supplier B: Price of $96 per set, plus packing cost of $3.50 per set. International transportation costs would total $3,500 per month, while total inland freight costs would be $800 per month for all 1,550 units.

Supplier C: Price of $93 per set, plus packing cost of $3.00 per set. International transportation costs would total $5,000 per month, while total inland freight costs would be $1,000 per month for all 1,550 units.

Calculate total landed costs per unit and per month for the three potential suppliers. Who is the cheapest? Who is the most expensive?

Reference no: EM131667528

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