Assignment
TCO Assignment
General Instructions:
You must submit your answers in written/typed form (Word) AND your analysis separately in an Excel spreadsheet. Your sheet must contain the calculations/formulae you used for the analysis to receive credit.
To receive credit for any numerical answer, you must show your work. Partial credit will be given for incorrect numerical answers due to simple errors where the work is shown, but no credit will be given for numerical answers (right or wrong) not showing your work or without formulas in the Excel sheet.
Read any/all questions and instructions carefully. Take your time, and don’t make simple, easy-to-avoid mistakes. For any math, please round to the nearest usable figure – remember units are whole numbers, $ are two decimals, % is one decimal, etc….
DETAILED FILE IS ATTACHED
Q1. Build a spreadsheet model that demonstrates the following (you can use the template problem set if you prefer!) [30 points]:
The total landed cost for the three options presented. Use appropriate formulae where necessary.
Q2. Please use your analysis to answer the following questions [20 points]:
Which source is the best option for the firm, and under what circumstances do you prefer to make the purchase? Why? {keep your answer concise please and, refer to your spreadsheet analysis and, critical thinking]
Q3. [ 10 points]
Create a table, using your response(s) to question 1, showing the percentages of the detailed costs as a % of the total landed cost. How much of the landed cost is not the “first cost” in each scenario? What would the administrative burden (effort) be for each scenario?
