Question: Problem 3 :3 Question Help The ABC Company had two options for sourcing molded plastic parts, and these options are presented in the table below.

Problem 3 :3 Question Help The ABC Company had

Problem 3 :3 Question Help The ABC Company had two options for sourcing molded plastic parts, and these options are presented in the table below. Now, the ABC Company has identified another potential supplier for the molded plastic parts. The new supplier has bid $0.0600 per part but also will impose a shipping and handling charge of $0.0050 per unit. Additional inventory handling charges should amount to $0.0050 per unit. Finally, purchasing costs are estimated at $20 per month for the length of the 36-month contract. Note that the forecasted demand is a total of 1 million units over the 36 months. Click the icon to view the total cost analysis for the sourcing decision at ABC. a. The total cost per unit for the new supplier is $ - (Enter your response rounded to four decimal places.) More Info - B $0.0100 $0.0050 $0.0300 $0.0181 $0.0091 $0.0110 $11,000 absorbed over 1,000,000 units Insourcing option Operating Expenses Direct labor Benefits (50%) Direct material Indirect labor Benefits (50%) Equipment depreciation Overhead Engineering/design costs Total cost per unit Outsourcing option Purchase price Shipping and handling Inventory charges Administrative costs Total cost per unit $0.0200 $0.0700 $70.000 absorbed over 1,000,000 units $0.1732 $0.0500 $0.0060 $0.0020 $0.0009 $0.0589 Savings per unit Total savings (1 million units) $0.1143 $114,300 Print Done Enter your answer in the answer box and then click Check

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