Question
GoGo Furniture needs to purchase glass panes to make glass top coffee tables. Last year GoGo Furniture has two suppliers, BolBol and TolTol. Based on
GoGo Furniture needs to purchase glass panes to make glass top coffee tables. Last year GoGo Furniture has two suppliers, BolBol and TolTol. Based on last year's expernece with these two suppliers, GoGo provides you with the following supplier related information:
Supplier related activities | Cost driver | Cost per driver unit | BoIBoI | ToIToI |
Returning poor quality glass panes | No. of glass panes returned | $120 | 25 | 10 |
Processing purchase orders | No. of purchase orders | $20 | 15 | 30 |
Receiving and inspecting deliveries | No. of deliveries | $50 | 15 | 15 |
Supplier audit | No. of audits | $1000 | 5 | 2 |
Rework due to poor quality glass | No. of glass top tables reworked | $100 | 60 | 15 |
Purchase price per glass pane | $100 | $150 | ||
No. of glass panes purchased | 500 | 800 |
Required:
The supplier related cost per pane for BolBol is
Calculate operating profit for BolBol is
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