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
$135.62
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
20%
of the motor's cost to produce it in Dayton. Furthermore, for motors produced in Mexico, the need for additional inventory will probably add
$3.05
to each motor's cost, and lower quality will probably cost approximately
$4.51
. Shipping from Mexico will increase cost by
$14.52
per motor. The cost of the motor produced in Mexico will be
$107.66
. If the motor is produced in Indonesia it will cost
$85.55
. The company estimates that the shipping cost from Indonesia will be
$14.83
per motor, and the costs of additional inventory and lower quality are estimated at
$4.82
and
$4.69
, respectively. The additional overhead is estimated to be
10%
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.)