Reference no: EM132133851

Nottingham Equipment sells high-end food processing equipment and systems to food processing plants. They are seeking bids for a powerful electric motor which will be used in one of their new products. Their forecasts show they will need 400 units per month. They have two supplier options: one domestic and one foreign. The table below summarizes the costs for these two options. Note that the administrative fee is a monthly flat fee, not a per-unit fee. Criteria Domestic Foreign Price/Unit $24.65 $22.20 Packaging Cost/Unit $1.07 $1.25 International Shipping/Unit $0 $1.15 Freight Forwarder Fee/Unit $0 $0.02 U.S. Port Handling/Unit $0 $0.35 Inland Freight/Unit $1.34 $1.49 Flatt Fee Admin Cost/Month (not per unit) $25 $100 What is the total landed cost (per month) for the domestic supplier? (Display your answer as a whole number.) What is the total landed cost (per month) for the foreign supplier? (Display your answer as a whole number.) Suppose actual demand is only 85% of expected demand. What would be the total landed cost of the domestic supplier? (Display your answer as a whole number.) At what volume of demand would the total cost be the same for the domestic supplier and the foreign supplier? (Display your answer as a whole number.) Save