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Moisha is developing material standards for her company. The operations manager wants grade A widgets because they are the easiest to work with and are
Moisha is developing material standards for her company. The operations manager wants grade A widgets because they are the easiest to work with and are the quality the customers want. Grade B will not work because customers do not want the lower grade, and it takes more time to assemble the product than with grade A materials. Moisha calls several suppliers to get prices for the widget. All are within $0.08 of each other. Since they will use millions of widgets, she decides that the $0.08 difference is important. The supplier who has the lowest price is known for delivering late and lowquality materials. Moisha decides to use the supplier who is $0.08 more but delivers on time and at the right quality. This supplier charges $0.5 per widget. Each unit of product requires 5 widgets. What is the standard cost per unit for widgets? Round to the nearest penny, two decimal places
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