(Solved): A company currently produces an electric motor at its main manufacturing facility in Dayton, Ohio. T ...

A company currently produces an electric motor at its main manufacturing facility in Dayton, Ohio. The motor's cost when produced at the Dayton plant is

per motor. The company is currently considering outsourcing production to either a plant in Mexico or a plant in Indonesia. The company believes that producing the motor in Mexico will result in additional overhead of

of the motor's cost to produce it in Dayton. Furthermore, for motors produced in Mexico, the need for additional inventory will probably add

to each motor's cost, and lower quality will probably cost approximately

. Shipping from Mexico will increase cost by

per motor. The cost of the motor produced in Mexico will be

. If the motor is produced in Indonesia it will cost

. The company estimates that the shipping cost from Indonesia will be

per motor, and the costs of additional inventory and lower quality are estimated at

and

, respectively. The additional overhead is estimated to be

of the motor's production cost in Dayton. Conduct a total cost of outsourcing for this item. The total cost of outsourcing to Mexico is

(Enter your response rounded to two decimal places.)