New ID Request SixSigma - Home ALCD Access Provisioning. Home DocuSign Market Place Other fave Fame Company manufactures engines. Fame produces all the parts necessary for its engines, except for one electronic component, which is purchased from two local suppliers: Hydra International and Parable Company. Both suppliers are reliable and rarely deliver late, Hydra sells the component for $12.00 per unit, while Parable sells the same component for $10.00. Fame purchases 80% of its components from Parable because of the lower price it offers. The total annual demand is 95,000 units. 1. Activity Data Inspecting components (sampling only) Reworking products (due to failed component) Warranty work (due to failed component) Activity Cost $ 210,000 $2,454,000 $1,923,000 11. Supplier Data Hydra International $12.00 19,000 unit purchase price Units purchased Sampling hours Rework hours Warranty hours Porable Company $10.00 76,000 2,600 3,800 7,000 60 150 550 Suppose that Fame loses $3,500,000 in sales per year because of its reputation for defective units attributable to failed components. Using warranty hours, assign the proportional cost of lost sales to Hydra International. What is the increase in the cost per unit? (Note: Round the lost sales per Warranty hour and the cost per unit to two decimal places.) Os 465 per unit e 4:02 PM 8/1/2021 Suppose that Fame loses $3,500,000 in sales per year because of its reputation for defective units attributable to failed components. Using warranty hours, assign the proportional cost of lost sales to Hydra International. What is the increase in the cost per unit? (Note: Round the lost sales per warranty hour and the cost per unit to two decimal places.) On 54.65 per un b. 525.72 per unit OC 51147 per unit Od: $11.95 per un Previous Next