Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

6 Kinnear Plastics manufactures various components for the aircraft and marine industry. Kinnear buys plastic from two vendors: Tappan Corporation and Hill Enterprises. Kinnear chooses

6 Kinnear Plastics manufactures various components for the aircraft and marine industry. Kinnear buys plastic from two vendors: Tappan Corporation and Hill Enterprises. Kinnear chooses the vendor based on price. Once the plastic is received, it is inspected to ensure that it is suitable for production. Plastic that is deemed unsuitable is disposed of The controller at Kinnear collected the following information on purchases for the past year: 4.28 points Total purchases (tons) Plastic discarded Tappan 3,500 Hill 6,500 105 325 eBook The purchasing manager has just received bids on an order for 240 tons of plastic from both Tappan and Hill. Tappan bid $1,940 and Hill bid $1,938 per ton. References Required: 1-a. Assume that the average quality, measured by the amounts discarded from the two companies, will continue as in the past. What i is the effective cost per ton for both Tappan and Hill? (Do not round intermediate calculations.) Tappan Hill Effective cost per ton 1-b. Which supplier would you recommend that the purchasing manager select? Tappan Che

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

Accounting 111

Authors: Carl S. Warren

1st Edition

1111065624, 978-1111065621

More Books

Students also viewed these Accounting questions