Yield: for every 100 units Asurion receives from purchase vendors, it is the amount of usable...
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Yield: for every 100 units Asurion receives from purchase vendors, it is the amount of usable finished goods available to send to customers after we process the units. Core Grades: when Asurion purchases devices from purchase vendors, we pay a different price depending on the quality of the device. Devices are graded into A, B, and C-grade buckets. A- grade is the highest quality and requires little processing work to be done. B-grade is middle quality and requires some processing work and has a lower yield. C-grade requires a lot of processing work and has a low yield. Finished goods: once a core is yielded and has passed Quality inspection levels, the device is ready to be shipped to a customer and considered a finished good. Purchase Cost: cost to purchase graded device from purchase vendor. Processing Cost per Yielded Unit: The part and labor cost associated with making a Grade A,B,C unit a finished good ready to ship to customer. Cost of Quality: Cost related to quality of the core purchased from vendor. Yielded purchase cost+ processing cost per yielded unit required to make a graded core a finished good. Assume 5% for this scenario. Question 1 Please answer the following questions: You are responsible for making purchasing decisions for your program. There are three vendors with different product available at different grades. Using the information below: How many finished goods will you get out of the devices you purchase? Show your work. What will the total cost and yield be on the finished goods? Show your work. Yield and cost information: Available Units- Yield Cost A-grade 70 95% $900 B-grade 30 85% $750 C-grade 50 65% $150 Yield: for every 100 units Asurion receives from purchase vendors, it is the amount of usable finished goods available to send to customers after we process the units. Core Grades: when Asurion purchases devices from purchase vendors, we pay a different price depending on the quality of the device. Devices are graded into A, B, and C-grade buckets. A- grade is the highest quality and requires little processing work to be done. B-grade is middle quality and requires some processing work and has a lower yield. C-grade requires a lot of processing work and has a low yield. Finished goods: once a core is yielded and has passed Quality inspection levels, the device is ready to be shipped to a customer and considered a finished good. Purchase Cost: cost to purchase graded device from purchase vendor. Processing Cost per Yielded Unit: The part and labor cost associated with making a Grade A,B,C unit a finished good ready to ship to customer. Cost of Quality: Cost related to quality of the core purchased from vendor. Yielded purchase cost+ processing cost per yielded unit required to make a graded core a finished good. Assume 5% for this scenario. Question 1 Please answer the following questions: You are responsible for making purchasing decisions for your program. There are three vendors with different product available at different grades. Using the information below: How many finished goods will you get out of the devices you purchase? Show your work. What will the total cost and yield be on the finished goods? Show your work. Yield and cost information: Available Units- Yield Cost A-grade 70 95% $900 B-grade 30 85% $750 C-grade 50 65% $150
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Related Book For
Intermediate Accounting
ISBN: 978-0077400163
6th edition
Authors: J. David Spiceland, James Sepe, Mark Nelson
Posted Date:
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