What is the total and unit cost structure for each of the suppliers?

$$ Who is lowest & highest cost?

$$ What would you guess to be the key cost drivers?

$2$ What is the capacity and utilization for each supplier? $-$ Lowest & highest utilization?

$3$ How would the unit costs change if each supplier ran at capacity $($I$.$e$.100\%$ utilization$)?$

Hint: figure out fixed and variable costs; Unit cost $=$ VC $+($FC $/$ Volume$)$

$$ Now who is lowest & highest cost?

$4$ Why does Supplier C have the higher direct labor cost per unit than Supplier D even though

Supplier C$$s direct labor wage $+$ fringe is lower?

$5$ Given what you have learned from the above, who is the lowest cost supplier and what sourcing

strategy might you consider?

Due $4$ th April by $6$pm EST, $100$ points