ch05excel_solution-pg170.xlsx

Sheet1

Performance Bicycle Parts
Supplier Shipping Days Per Unit Base Cost Per Unit Shipping Cost Import Duty % Per Unit Import Duty Cost Per Unit Warehouse Cost Average Inventory (Units) Average Inventory Value Total Inventory Carrying Cost Average Per Unit Carrying Cost Per Unit Total Cost Gross Profit Percent Gross Profit
United States 4 $3.90 $0.25 0 $0.00 $4.15 2,400 $9,960 $2,390 0.02 $4.17 $2.33 35.9%
South Korea 120 $1.70 $0.80 4% $0.10 $2.60 72,000 $187,200 $44,928 0.31 $2.91 $3.59 55.2%
India 160 $1.60 $1.10 3% $0.08 $2.78 96,000 $266,976 $64,074 0.44 $3.23 $3.27 50.4%
Russia 140 $1.35 $0.95 6% $0.14 $2.44 84,000 $204,792 $49,150 0.34 $2.78 $3.72 57.2%
Vietnam 100 $1.55 $0.75 4% $0.09 $2.39 60,000 $143,520 $34,445 0.24 $2.63 $3.87 59.5%
China 110 $1.65 $0.85 5% $0.13 $2.63 66,000 $173,250 $41,580 0.29 $2.91 $3.59 55.2%
Assumptions
Tubes Per Day 400
Selling Price $6.50
Average Inventory 150%
Carrying Cost 24%
Units Per Year 144,000

Sheet2