Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

5 21.66 points Required Information [The following Information applies to the questions displayed below.] Hult Games buys electronic components for manufacturing from two suppliers,

image text in transcribed

5 21.66 points Required Information [The following Information applies to the questions displayed below.] Hult Games buys electronic components for manufacturing from two suppliers, Milan Components and Dundee Parts. If the components are delivered late, the shipment to the customer is delayed. Delayed shipments lead to contractual penalties that call for Hult to reimburse a portion of the purchase price to the customer. During the past quarter, the purchasing and delivery data for the two suppliers showed the following. eBook Total purchases (cartons) Milan 140,000 Dundee 60,000 Total 200,000 Average purchase price (per carton) $ 18.00 $ Number of deliveries 80 20 20 $ 18.60 100 References Percentage of late deliveries 25% 10% 22% The Accounting Department recorded $635,500 as the cost of late deliveries to customers. Required: Assume that the average quality, measured by the percentage of late deliveries, and prices from the two companies will continue as in the past. What is the effective price for components from the two companies when late deliveries are considered? (Do not round Intermediate calculations. Round your answers to 2 decimal places.) Milan Dundee Effective Cost Per Carton

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fundamental Managerial Accounting Concepts

Authors: Edmonds, Tsay, olds

6th Edition

71220720, 78110890, 9780071220729, 978-0078110894

More Books

Students also viewed these Accounting questions

Question

1. What is a microdrive?

Answered: 1 week ago

Question

BPR always involves automation. Group of answer choices True False

Answered: 1 week ago

Question

=+How do you calculate the present value of a mixed stream?

Answered: 1 week ago