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JFI Foods produces processed foods. Its basic ingredient is a feedstock that is mixed with other ingredients to produce the final packaged product. JFI purchases

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JFI Foods produces processed foods. Its basic ingredient is a feedstock that is mixed with other ingredients to produce the final packaged product. JFI purchases the feedstock from two suppliers, Rex Materials and Red Oak Chemicals. The quality of the final product depends directly on the quality of the feedstock. If the feedstock is not correct, JF has to dispose of the entire batch. All feedstock in this business is occasionally "bad" so JFl measures what it calls the yield." which is measured as Yield Good output Input where the output and inputs are both measured in tons. As a benchmark, JF1 expects to get 17 tons of good output for every 50 tons of feedstock purchased for a yield of 34 percent (= 17 tons of output + 50 tons of feedstock) Data on the two suppliers for the past year follow Rex Materials 1,440 1,296 225 Red Oak Chemicals 2.340 1,630 $ 185 Total inputs purchased (tong) Good output (tons) Average price (per con) Total 3,780 2,934 $ 200 Rex Materials Red Oak Chemicals Effective price per ton

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