) Electrotrim Yard Products, located in Cedar Rapids, Iowa manufactures a line of rechargeable electric yard care products. They offshore outsource most of the components of their products and assemble them in the United States. One of the key components for their products is the electric drive motor that several their products share. In total they plan to use 25,000 electric drive motors a year and they source their drive motors from the Dian De Bufen Corporation in Shenzhen, China for $50.00 per unit. Recently, due to the shortage of ocean freight containers, the ordering costs for these drive motors has jumped from $3000 per order to $4500 per order. The CEO of US Electric Parts, based in Iowa City, has reached out to Electrotrim with an offer to supply the electric drive motors. US Electric Parts can supply the motors for a cost of $52.00 per unit but can guarantee an order cost of $100 per order; covering the freight costs by delivering with their own trucks. The US Electric Parts offer is contingent upon a guarantee of a full year of volume. Inventory carrying cost for Electrotrim is 28%.

1. Which alternative is advantageous from a total cost perspective? (Make sure to show your work; answers without supporting detail will receive partial credit)
2. Which alternative would you recommend and what factors would you base your recommendation on?