Question: Component Component No. Source Unit Cost Quantity Extended Cost Brake cable M0593 Nissin 27.81 1 27.81 Brake pedal M0546 Harrison Billet 6.03 2 12.06 Brake

Component Component No. Source Unit Cost Quantity Extended Cost
Brake cable M0593 Nissin 27.81 1 27.81
Brake pedal M0546 Harrison Billet 6.03 2 12.06
Brake pad M3203 Russell 27.05 2 54.10
Front brake pump M0959 Brembo 66.05 1 66.05
Rear brake pump M4739 Brembo 54.00 1 54.00
Front brake caliper M5930 Nissin 105.20 1 105.20
Rear brake caliper M7942 Nissin 106.78 1 106.78
Front brake disc M3920 Russell 143.80 1 143.80
Rear brake disc M0588 Russell 56.42 1 56.42
Brake pipe M0943 Harrison Billet 28.52 1 28.52
Brake lever cover M1059 Brembo 2.62 1 2.62
Total Cost 657.36
Total Cost of Moto Bike 2,191.20

Dirt Bikes has found a good alternative supplier for the Moto 300 brake pipe and front brake caliper. The supplier believes it can provide the brake pipe for a cost of $22 to $25 per unit and the front brake caliper for $99 to $102 per unit. Develop a sensitivity analysis to show the impact on total brake system materials costs if the front brake caliper unit cost ranges from $99 to $102 and if the brake pipe unit cost ranges from $22 to $25.

What is the most Dirt Bikes could save by switching the supplier for these 2 brake system components? What is the least it could save?

The brake system represents 30 percent of the total materials cost for one Moto 300 motorcycle. Use sensitivity analysis again to show the impact of the changes in front brake caliper unit costs and brake pipe unit costs described previously on total materials costs for this motorcycle model.

Could you explain how you did every step so I can see exactly how to do it, I got stuck. Thanks!

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