Essay by ramosmiltonUniversity, Master'sA-, October 2010

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CelluClear Wireless � PAGE \* Arabic �7�

Running Head: CelluClear Wireless Goes Global

CelluClear Wireless Goes Global

Milton Ramos

University of Phoenix

HRM 531 Human Capital Management


Instructor: Juan Stegman

October 11, 2010

Workshop 3, Assignment 3


CelluClear Wireless a manufacturer of cell phones in the United States just received a request of an order for 100,000 cell phones, willing to pay no more than $15 dollars per unit, with a complete delivery of the units in 90 days to Big Box, a chain retail store located in Canada. CelluClear manufactures two models of cell phones, the Alpha model, which sells for $20 dollars and is the high moving item for CelluClear and the Beta model that sells for $30 dollars per unit and is the more slowly moving model. CelluClear is currently able to handle an additional 70,000 units by switching the Beta line to manufacture Alpha models.

Another alternative to fulfilling the order is using the original equipment manufacturer (OEM), who has made it known that they can manufacture the Alpha model cell phone for $14 dollars per unit, at any time, and for any quantity required. To decide what to do CelluClear will evaluate and analyze how fixed and variable cost should be adjusted to understand the opportunity cost of each alternative.

Considerations for Importing and Exporting

Relevant cost associated with importing and exporting to foreign countries includes the processing of the application, the cost can vary depending on the export or import and country in which the transactions will take place. In addition to the application to export or import considerations for permits, duty free rates, tariffs, value-added taxes, and if used broker license fees to facilitate the import of export from Mexico. Time required for custom clearance and inspections for...