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Fame Company manufactures engines. Fame produces all the parts necessary for its engines, except for one electronic component, which is purchased from two local suppliers:
Fame Company manufactures engines. Fame produces all the parts necessary for its engines, except for one electronic component, which is purchased from two local suppliers: Hydra International and Parable Company. Both suppliers are reliable and rarely deliver late. Hydra sells the component for $12.00 per unit, while Parable sells the same component for $10.00. Fame purchases 80% of its components from Parable because of the lower price it offers. The total annual demand i 95,000 units. Calculate the activity rate for inspecting components based on sampling hours. (Note: Round your answer to the nearest dollar.) a. $72 per hour b. $77 per hour c. $75 per hour d. $80 per hour :. \$79 per hour
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