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Chemicals. The quality of the final product depends directly on the quality of the lubricant. If the lubricant is off, Atwater has to dispose of
Chemicals. The quality of the final product depends directly on the quality of the lubricant. If the lubricant is "off," Atwater has to dispose of the entire batch. Because all lubricant can be "off," Atwater uses a measure it calls the "yield," which is computed as Yield=GoodoutputInput where the output and input are both measured in barrels. As a benchmark. Atwater expects to get 12 barrels of good output for every 16 barrels of lubricant purchased for a yield of 75 percent (=12 barrels of output 16 barrels of lubricant). Data on the two suppliers for the past year follow: quired: sume that the average quality, measured by the yield, and prices from the two companies will continue as in the past. What is the ective price for lubricant from the two companies when quality is considered? te: Do not round intermediate calculations. Round your answers to 2 decimal places. Assume that the average quality, measured by the yield, and prices from the two companies will continue as in the past. What is the effective price for lubricant from the two companies when quality is considered? Note: Do not round intermediate calculations. Round your answers to 2 decimal places
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