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)

154,000

66,000

220,000

Average purchase price(per carton)

$

16

$

18

$

16.60

Number of deliveries

80

20

100

Percentage of late deliveries

25

%

10

%

22

%

The Accounting Department recorded $789,250 as the cost of late deliveries to customers.

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

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 Dundee Parts? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 1 decimal place (i.e., 32.1).)

Percentage of late deliveries

%