LM.81 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 8,750 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 16,000 units of demand-whether shipping one unit, one thousand units, or 16,000 units, the cost is the same (the flat fee). Criteria Domestic Foreign 1 Foreign 2 Price/Unit $3.94 $3.20 $2.82 Packaging Cost/Unit $0.10 $0.27 $0.26 International Shipping/Entire Shipment $0 $790 $850 Inland Freight/Entire Shipment $330 $310 $300 What is the total landed cost for the domestic supplier? (Display your answer as a whole number.) Number What is the total landed cost for foreign supplier 1? (Display your answer as a whole number.) Number What is the total landed cost for foreign supplier 2? (Display your answer as a whole number.) Number Suppose actual demand is only 88% of expected demand. What would be the total landed cost of the domestic supplier? (Display your answer as a whole number.) Number At what volume of monthy demand would the total cost be the same for the domestic supplier and foreign supplier 1? (Display your answer as a whole number.) Number

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
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LM.81 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 8,750 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 16,000 units of demand-whether shipping one unit, one thousand units, or 16,000 units, the cost is the same (the flat fee).
Criteria
Domestic
Foreign 1
Foreign 2
Price/Unit
$3.94
$3.20
$2.82
Packaging Cost/Unit
$0.10
$0.27
$0.26
International Shipping/Entire Shipment
$0
$790
$850
Inland Freight/Entire Shipment
$330
$310
$300
What is the total landed cost for the domestic supplier? (Display your answer as a whole number.)
Number
What is the total landed cost for foreign supplier 1? (Display your answer as a whole number.)
Number
What is the total landed cost for foreign supplier 2? (Display your answer as a whole number.)
Number
Suppose actual demand is only 88% of expected demand. What would be the total landed cost of the domestic supplier? (Display your answer as a whole
number.)
Number
At what volume of monthy demand would the total cost be the same for the domestic supplier and foreign supplier 1? (Display your answer as a whole
number.)
Number
Transcribed Image Text:LM.81 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 8,750 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 16,000 units of demand-whether shipping one unit, one thousand units, or 16,000 units, the cost is the same (the flat fee). Criteria Domestic Foreign 1 Foreign 2 Price/Unit $3.94 $3.20 $2.82 Packaging Cost/Unit $0.10 $0.27 $0.26 International Shipping/Entire Shipment $0 $790 $850 Inland Freight/Entire Shipment $330 $310 $300 What is the total landed cost for the domestic supplier? (Display your answer as a whole number.) Number What is the total landed cost for foreign supplier 1? (Display your answer as a whole number.) Number What is the total landed cost for foreign supplier 2? (Display your answer as a whole number.) Number Suppose actual demand is only 88% of expected demand. What would be the total landed cost of the domestic supplier? (Display your answer as a whole number.) Number At what volume of monthy demand would the total cost be the same for the domestic supplier and foreign supplier 1? (Display your answer as a whole number.) Number
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