Individual Deliverable (500–700 words) (50 points): Investigate and back up your decision on the question of whether or not it would be more ethical to invest the money in the U.S. The firm...

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Individual Deliverable (500–700 words) (50 points):Investigate and back up your decision on the question of whether or not it would be more ethical to invest the money in the U.S.


The firm manufactures a global positioning system (GPS) that sells for $2,000, with cost of goods sold (hardware 30% and software 70%) of 55% of sales. Compared to the United States, China offers a 7% cost reduction in electronics manufacturing hardware and a 45% reduction in software programming. India offers a 32% reduction in software programming costs. So far, you have been unable to determine whether India has the facilities to undertake the hardware manufacturing. The firm has to invest $300 million. As far as China is concerned, you can send hardware and software manufacturing to China or India.



Answered Same DayDec 21, 2021

Answer To: Individual Deliverable (500–700 words) (50 points): Investigate and back up your decision on the...

David answered on Dec 21 2021
127 Votes
The firm manufactures a global positioning system (GPS) that sells for $2,000, with cost of
goods sold (hardware 30% and software 70%) of 55%
of sales. Compared to the United
States, China offers a 7% cost reduction in electronics manufacturing hardware and a 45%
reduction in software programming. India offers a 32% reduction in software
programming costs. So far, you have been unable to determine whether India has the
facilities to undertake the hardware manufacturing. The firm has to invest $300 million. As
far as China is concerned, you can send hardware and software manufacturing to China or
India.
The firm manufactures a global positioning system (GPS) that sells for $2,000, with
cost of goods sold (hardware 30% and software 70%) of 55% of sales
United States
Sales $2,000
Cost of goods sold – 55%
Hardware – 30% =30% of (2,000 x 55%) =$330
Software - 70% = 70% of (2,000 x 55%) =$770 $1,100
Gross Profit $900/-
Cost of goods sold as a percentage of Sales = $1,100/$2,000 =55.00%
China offers a 7% cost reduction in electronics manufacturing hardware and a 45%
reduction in software programming.
China
Sales $2,000
Cost of goods sold – 55%
Hardware – 30% =$330 x (1-.07) =$307
Software - 70% = $770 x (1-.45) =$424 $730
Gross Profit ...
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