Hult Games buys electronic components for manufacturing from two suppliers, Milan Components and Dundee Parts if the components are delivered late, the shipment to the customer is delayed. Delayed shipments lead to contractual penalties that call for Hult to reimburse a portion of the purchase price to the customer. During the past quarter, the purchasing and delivery data for the two suppliers showed the following. Milan Dundee Total Total purchases (cartons) 126,000 54,900 180,000 Average purchase price (per carton) $22.00 $ 24 $22.60 Number of deliveries 80 100 Percentage of late deliveries 250 100 226 20 The Accounting Department recorded $553,500 as the cost of late deliveries to customers. Exercise 10-36 (Algo) Activity-Based Costing of Suppliers (LO 10-3, 4) Required: Assume that the average quality, measured by the percentage of late deliveries, and prices from the two companies will continue as in the past. What is the effective price for components from the two companies when late deliveries are considered? (Do not round intermediate calculations. Round your answers to 2 decimal places.) Effectivo Cost Sama During the past quarter, the purchasing and delivery data for the two suppliers showed the following. Help Save & E 4. Total purchases (cartone) Average purchase price (per carton) Number of deliveries Percentage of late deliveries Milan 126,000 5 22.00 80 256 Dundee Total 54,000 100.000 24 $22.60 20 100 101 221 Part 1 of 2 The Accounting Department recorded $553,500 as the cost of late deliveries to customers. 4.28 oints Exercise 10-36 (Algo) Activity-Based Costing of Suppliers (LO 10-3,4) Required: Assume that the average quality, measured by the percentage of late deliveries, and prices from the two companies will continue as in the past. What is the effective price for components from the two companies when late deliveries are considered? (Do not round intermediate calculations. Round your answers to 2 decimal places.) Effective Cost Per Carton Milan Dundee 5 pures that CORTO MURO remorse a porun ne purchase price to Somer During the past quarter, the purchasing and delivery data for the two suppliers showed the following Milan Dundee Total Total purchases (carton) 126,000 54.000 100,000 Average purchase price (per carton) $ 22.00 24 $22.60 Number of deliveries 80 20 100 Percentage of late deliveries 25 100 220 Part 2 of 2 The Accounting Department recorded $553,500 as the cost of late deliverlos to customers. 14.28 points Print Exercise 10-37 (Algo) Activity-Based Costing of Suppliers (LO 10-3, 4) Assume that the average quality, measured by the percentage of late deliveries, and prices from the two companies will continue as in the past. Required: What percentage of late deliveries by Milan would make Hult indifferent between buying from Milan Components and Dundeer Parts? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 1 decimal place (6.3239.) Perbantage of late oliveries
