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Total landed cost for the domestic supplier

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Reference no: EM132720802

Monkey's Fist is trying to determine where to source their product.

In the past, they have sourced solely domestically, but they have sufficiently grown to look at international suppliers. Next month's expected demand is 7,750 units. There are three suppliers to choose from, one domestic, the other two offshore. The table below contains all relevant cost data. Note that both international shipping and inland freight costs are a flat fee for a shipment of up to 18,000 units of demand-whether shipping one unit, one thousand units, or 18,000 units, the cost is the same (the flat fee).

Criteria Domestic Foreign 1 Foreign 2
Price/Unit $5.54 $4.40 $4.56
Packaging Cost/Unit $0.18 $0.40 $0.42
International Shipping/Entire Shipment $0 $630 $620
Inland Freight/Entire Shipment $240 $200 $230

What is the total landed cost for the domestic supplier? (whole number.)

What is the total landed cost for foreign supplier 1? (whole number.)

What is the total landed cost for foreign supplier 2? (whole number.)

Suppose actual demand is only 84% of expected demand. What would be the total landed cost of the domestic supplier? (whole number.)

At what volume of monthly demand would the total cost be the same for the domestic supplier and foreign supplier 1? (whole number.)

Reference no: EM132720802

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