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What are total purchase and oversight costs

    Assignment Instructions

    Assignment ID: FG133136016

    What are total purchase and oversight costs if annual demand of a product in a company is 1,000,000 units, and the purchase price is $2.42 per unit, and the management oversight costs to monitor and expedite the trans-Pacific shipment are $0.16 per unit?

    1. Procurement costs (2 marks) =

    2. Management oversight cost (2 marks) =

    3. Total Cost (2 marks) =

    (Please show your work to earn your grade).

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