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Goutam Company prints a variety of publications and colored inserts for promotional brochures. Currently, Goutam produces its own ink, including a special metallic color. India
Goutam Company prints a variety of publications and colored inserts for promotional brochures. Currently, Goutam produces its own ink, including a special metallic color. India Inks has offered to supply Goutam with the ounces of metallic ink that it needs each year for $ per ounce. Goutam is interested because this is a particularly difficult ink to make. The purchasing department must make special efforts to locate suppliers; the metallic component requires special handling, and since the metallic ink uses machinery that is also used to make other colors of ink, the machinery must be cleaned very well before every batch of metallic ink. The accounting department supplied the following unit costs:
tableDirect materials,$
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