Students should create a spreadsheet with the following assumptions:

Tubes per Day $=400$

Selling Price $=$ $$6\mathrm{.}50$

Average Inventory $=150\%$

Carrying Cost $=24\%$

Units per Year $=144,000$

Students should use the following formulas to complete the spreadsheet:

Per Unit Import Duty Cost $=($Per Unit Base Cost $+$ Per Unit Shipping Cost$)\backslash$times Import Duty Rate

Per Unit Warehouse Cost $=$ Per Unit Base Cost $+$ Per Unit Shipping Cost $+$ Per Unit Import

Duty Cost

Average Inventory $($Units$)=$ Average Inventory $\backslash$times Tubes Per Day $\backslash$times Shipping Days

Average Inventory Value $=$ Per Unit Warehouse Cost $\backslash$times Average Inventory $($Units$)$

Total Inventory Carrying Cost $=$ Average Inventory Value $\backslash$times Carrying Cost

Average per Unit Carrying Cost $=$ Total Inventory Carrying Cost $-$: Units per Year

Per Unit Total Cost $=$ Per Unit Warehouse Cost $+$ Average per Unit Carrying Cost

Profit $=$ Selling Price $$ Per Unit Total Cost

Percent Gross Profit $=$ Gross Profit $-$: Selling Price

India is the supplier source that requires the highest investment of working capital or cash for

average inventory $($Average Inventory Value$).$ Vietnam is the supplier source that provides Ted

with the highest percentage of gross profit on the presta replacement tube.