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4. Gomez runs a small engine manufacturing business in his New Orleans plant. With recent increase in global disruption, he is faced with the decision of selecting a supplier. He has a newfound idea to select between a domestic supplier and oversea supplier. The following data represent the cost Mr. Gomez will incur if he chooses either of the supplier. Assume that both suppliers use similar resources at cost as follows and products supplied are identical and they sell 2.000 units at $200.00 each. Domestic Supplier Oversea Supplier Annual warehouse rental $20,000.00 Annual warehouse rental $20,000.00 Payment for material $27,000.00 Payment for material $15,000.00 Borrowed $300,000 @ 15% interest Borrowed $300,000 @ 15% interest Electricity, phone & internet services $3000.00 Electricity, phone & internet services $5000.00 Bought machine $185,000.00 Bought machine $185,000.00 Employs 4000 labor @ $25.00 per labor Employs 2000 labor @ $30.00 per labor Given the above information in table 2 above, if the local supplier has a failure probability of .025 to deliver the product: a How much is Total Fixed Cost? b. How much is Total Variable Cost? c. How much is the Total Revenue? d What is his profit if he chooses this supplier? e What is the expected value of his profit? f. What is the variance of his profit if he chooses the local supplier (10points) D. if the oversea supplier has a .025% chance of failing to deliver the product: a What will his profit he if he chooses this supplier? | b. What is the expected value of his profit? E Based on your calculations, which supplier would you recommend for Mr. Gomez to do business with. And why? 4. Gomez runs a small engine manufacturing business in his New Orleans plant. With recent increase in global disruption, he is faced with the decision of selecting a supplier. He has a newfound idea to select between a domestic supplier and oversea supplier. The following data represent the cost Mr. Gomez will incur if he chooses either of the supplier. Assume that both suppliers use similar resources at cost as follows and products supplied are identical and they sell 2.000 units at $200.00 each. Domestic Supplier Oversea Supplier Annual warehouse rental $20,000.00 Annual warehouse rental $20,000.00 Payment for material $27,000.00 Payment for material $15,000.00 Borrowed $300,000 @ 15% interest Borrowed $300,000 @ 15% interest Electricity, phone & internet services $3000.00 Electricity, phone & internet services $5000.00 Bought machine $185,000.00 Bought machine $185,000.00 Employs 4000 labor @ $25.00 per labor Employs 2000 labor @ $30.00 per labor Given the above information in table 2 above, if the local supplier has a failure probability of .025 to deliver the product: a How much is Total Fixed Cost? b. How much is Total Variable Cost? c. How much is the Total Revenue? d What is his profit if he chooses this supplier? e What is the expected value of his profit? f. What is the variance of his profit if he chooses the local supplier (10points) D. if the oversea supplier has a .025% chance of failing to deliver the product: a What will his profit he if he chooses this supplier? | b. What is the expected value of his profit? E Based on your calculations, which supplier would you recommend for Mr. Gomez to do business with. And why