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Extra Credit Project: Activity-Based Costing of Suppliers Happy Family Appliance Store buy appliances from two suppliers, Gentle Wash and Hot Stove. The appliances are delivered

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Extra Credit Project: Activity-Based Costing of Suppliers Happy Family Appliance Store buy appliances from two suppliers, Gentle Wash and Hot Stove. The appliances are delivered in sets of two. If the sets are delivered late, the installation of appliances in customers' homes is delayed. Delayed installations lead to contractual penalties that call for Happy Family Appliances Store reimburse a portion of the purchase price to the customer. In the las quarter, the purchasing and delivery data for the two appliances suppliers showed the following: The Accounting Department recorded $234,00 as the cost of late deliveries to customers. Soluefor: Assume that the average quality, measured by the percentage of late deliveries, and prices from the two companies will continue as in the past. Also assume that the number of components is the same for all deliveries from either company. What is the effective price for sets from the two companies when late deliveries are considered? Refer to Exhibit 10.10. First calculate the cost of a late delivery

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