Rusty Industries manufactures a sugar-substitute, SS2, from a natural ingredient, natura. Each 10-pound package of SS2 is

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Rusty Industries manufactures a sugar-substitute, SS–2, from a natural ingredient, natura. Each 10-pound package of SS–2 is manufactured using twelve pounds of natura. The company has determined the purchase price per pound of natura to be $5.00 with a purchase term of 3/15, n/45 and FOB, destination. Rusty has a policy of taking all discounts offered. Determine the standard direct materials cost for one package of SS–2.

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Cost management a strategic approach

ISBN: 978-0073526942

5th edition

Authors: Edward J. Blocher, David E. Stout, Gary Cokins

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