Given, unit cost in Mexico = $350 Shipping costs from Mexico is $2000 for 500 units. So, shipping cost per unit = $2000500 = $4 Therefore, total unit cost in Mexico for the first month = $350 + $4 = $354 Now, the question mentions that shipping cost from Mexico are expected to increase by 1% every month. This increment = $4 * 1% = $0.04 So, every month there is an increment of $0.04 in the total unit cost in mexico?

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Your approach to calculating the initial unit cost in Mexico and the shipping cost per unit is corre... View the full answer