Northcutt manufactures​ high-end racing bikes and is looking for a source of gear sprocket sets. Northcutt would need 1400 sets a month. Supplier A is a domestic​ firm, and Suppliers B and C are located overseas. Cost information for the suppliers is as​ follows: Supplier A- Price of ​$150 per​ set, plus packing cost of ​$3.00 per set. Total inland freight costs for all 1400 units would be ​$550 per month. Supplier B- Price of ​$74.00 per​ set, plus packing cost of ​$2.00 per set. International transportation costs would total ​$4000 per​ month, while total inland freight costs would be ​$850 per month. Supplier C- Price of ​$97 per​ set, plus packing cost of ​$4 per set. International transportation costs would total ​$4800 per​ month, while total inland freight costs would be ​$1200 per month. The total landed cost per month for Supplier B is __​$

Practical Management Science
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ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
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Northcutt manufactures​ high-end racing bikes and is looking for a source of gear sprocket sets. Northcutt would need 1400 sets a month. Supplier A is a domestic​ firm, and Suppliers B and C are located overseas. Cost information for the suppliers is as​ follows:

Supplier A- Price of ​$150 per​ set, plus packing cost of ​$3.00 per set. Total inland freight costs for all 1400 units would be ​$550 per month.

Supplier B- Price of ​$74.00 per​ set, plus packing cost of ​$2.00 per set. International transportation costs would total ​$4000 per​ month, while total inland freight costs would be ​$850 per month.

Supplier C- Price of ​$97 per​ set, plus packing cost of ​$4 per set. International transportation costs would total ​$4800 per​ month, while total inland freight costs would be ​$1200 per month.

The total landed cost per month for Supplier B is __​$

 

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