Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Deep Cleaning Company ( DCC ) manufactures a powerful cleaning solvent. The main ingredient in the solvent is a raw material called Echol. Information on
Deep Cleaning Company DCC manufactures a powerful cleaning solvent. The main ingredient in the solvent is a raw material called Echol. Information on the purchase and use of Echol follows.
Purchase of Echol: Echol is purchased in litre containers at a cost of $ per container. A discount of is offered by the supplier for payment within days, and DCC takes all discounts. Shipping costs, which DCC must pay, amount to $ for an average shipment of one hundred litre containers of Echol.
Use of Echol: The bill of materials calls for litres of Echol per bottle of cleaning solvent. About of all Echol used is lost through spillage or evaporation the litres above is the actual content per bottle In addition, statistical analysis has shown that every st bottle is rejected at final inspection because of contamination.
Required:
Compute the standard purchase price for one litre of Echol. Do not round intermediate calculations and round final answer to decimal places.
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