acme is analyzing the total cost of acquisition of the ky-16 product as part of the process to potentially outsource it. while most of the cost elements are quite obvious (they get the quotes from the supplier, the freight forwarder, etc.), obtaining the costs of inbound warehousing is a bit more complex and requires some basic computation. the basic data, on an annual basis, is as follows (associates are the term used for warehouse workers on the line in receiving, inspection, storage, and returns)
Number of Units = 50,000
Cost per square foot (fully loaded) = $5
Associate Compensation (fully loaded) = $80,000
Supervisor Compensation (fully loaded) = $120,000
IT Support personnel (per full-time person) = $150,000
Admin Support personnel (per full-time person) = $70,000
The different Warehousing functions and resources (people, square footage of space) required per function are as follows:
Functions
# of People
Square Footage Allocated
Receiving
8
20,000
Inspection
4
2500
Storage
3
20,000
Returns processing and packaging
2
16,000
Supervisory
2.5
IT Support
0.5
Admin Support
1
Assume that Associates are hired for all job roles other than Supervisory, IT Support, Admin Support
Given the above data, what is the estimated warehousing cost per unit of the KY-16 product per year?
Group of answer choices
42
50
32
61
36
