Question: Question 6 Based on the supplied data (below), calculate annual outsourcing savings (5 points): Annual sales volume: 1.6 million units Cost to manufacture domestically: $12.25/unit

Question 6 Based on the supplied data (below),

Question 6 Based on the supplied data (below), calculate annual outsourcing savings (5 points): Annual sales volume: 1.6 million units Cost to manufacture domestically: $12.25/unit Chinese bid price (delivered to the port of Hong Kong): $9.80 Shipping cost: $2500/container (note: 5,000 units fit in a shipping container)

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