Question: OSB Ltd, located in Windsor, must determine from which one of five sellers the company should purchase a certain product. Note: CAD indicates Canadian dollars.

OSB Ltd, located in Windsor, must determine from which one of five sellers the company should purchase a certain product. Note: CAD indicates Canadian dollars. Seller A sells the product for $4250 CAD FOB London Warehouse, and ships from their warehouse in London (Ontario) Seller B sells the product for $4275 CAD FOB Chatham Sales Office, and ships from their warehouse in Toronto Seller C uses a zone pricing system, where consignees in Toronto pay $4350 CAD Delivered and consignees outside of Toronto pay $4400 CAD Delivered; Seller C ships from their warehouse in Toronto Seller D sells the product for $3720 CAD under FOB New York City (U.S.A.) Warehouse terms, and ships from their warehouse in New York City, U.S.A. Seller E, located in New York City (U.S.A.), sells the product for $4185 CAD FOB Toronto (Ontario) Warehouse terms, and ships from their warehouse in Toronto (Ontario) Delivery costs for this product are: from Chatham to Windsor: $75 CAD from London to Windsor: $125 CAD from Toronto to Windsor: $175 CAD from New York City to Toronto: $480 CAD from New York City to Windsor: $540 CAD There is a 5% Customs duty on this product when it enters Canada from U.S.A. Required: a. For each of the five sellers, calculate OSB Ltds landed cost (landed price) to get the product to OSBs Windsor facility. b. From which one seller should OSB Ltd in Windsor purchase the product if OSB Ltd wants to minimize landed cost?

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