I need answer for a Weight Rating 16% 3 4 Criteria over tv pervis $5,00 a. Quali

Question

I need answer for a

Weight Rating 16% 3 4 Criteria over tv pervis $5,00 a. Quality and 4 delivery 5 60% 7% 5 Price Social responsibility 5 17% 100% Currency risk Totals a. What is the total cost of producing in Mexico and how does it compare to the U.S.? b. What are the total weighted scores for the Mexican 7. supplier and in-house production? Should the company outsource the product and why? c. 5. A line of furniture is made by the Drazal Company in South Carolina and is being considered for outsourcing to China. The unit manufacturing costs in the U.S. are: Unit Cost of Goods Sold Direct labor Materials 53 122 49 224 Overhead Total When produced in China, direct labor will be 60 percent of the U.S. cost and overhead will also be 60 percent of the U.S. cost, since it consists mostly of salaries. Materials costs will be 10 percent lower in China. Transporting the furniture from China will cost $27,000 for seven containers to transport the annual supply of 500 units from the factory in China to the Drazal warehouse in the U.S. by rail, truck, and sea. To ensure quality, it will cost $12,000 per year to

Explanation / Answer

Per unit cost is $259

And the total cost is $129500

For 1 unit For 1 unit For 500 units US Rate China Direct labor 53 60% 31.8 Materials 122 90% 109.8 Overhead 49 60% 29.4 T Total 224 171 85500 Other Per year Admin 5000 Quality 12000 Transport 27000 Total 44000 44000 Units 500 AAC Avg additional cost 88 (T+AAC) So total cost 259 129500 Ans A

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