Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Assume all else remains the same. What percentage of metal from Chopin Yards that requires further processing would make Rex Metal Fabricators indifferent between buying
Assume all else remains the same. What percentage of metal from Chopin Yards that requires further processing would make Rex Metal Fabricators indifferent between buying from Chopin Yards and Joe Company? \begin{tabular}{|l|r|r|r|} \hline & \multicolumn{1}{l|l}{ Chopin Joe } & \multicolumn{1}{l|}{ Total } \\ \hline & Yard & \multicolumn{1}{l|}{ Company } \\ \hline Total purchases (tons) & 1500 & 1000 & 2500 \\ \hline Average purchase price (per ton) & $124.00 & $120.00 & $122.00 \\ \hline Total purchase Price & $186,000.00 & $120,000.00 & $305,000.00 \\ \hline Percentage requiring further processing & 2.00% & 7.50% & 4.20% \\ \hline Cost to treat the metal (per ton) & 80 & 80 \\ \hline Total cost to treat the metal & $2,400.00 & $6,000.00 \\ \hline Total effective cost & $188,400.00 & $126,000.00 \\ \hline Effective Cost per ton & $125.60 & $126.00 \\ \hline & & & \\ \hline & & & \\ \hline Total purchase (tons) & 1500 & 1500 & \\ \hline Average price per ton & $124.00 & $120.00 \\ \hline Percent needing further processing & 2.00% & 7.50% \\ \hline Amount for further processing in tons & 30 & 112.5 \\ \hline & & \\ \hline & & & \\ \hline \end{tabular}
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started