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ona wuys TRD TO HIGHWAY the components are delivered late, the shipment to the customer is delayed. Delayed shipments lead to contractual penalties that call

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ona wuys TRD TO HIGHWAY the components are delivered late, the shipment to the customer is delayed. Delayed shipments lead to contractual penalties that call for Hult to remburse 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 HAIan Dundee Total Total purchases (cartons) 126,000 54,000 180,000 Average purchase price per carton) $ 22.00 $ 24 $22.60 Number of deliveries 80 20 Percentage of late deliveries 255 101 228 100 The Accounting Department recorded $553,500 as the cost of tate deliveries to customers. 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 Dundee Parts? (Do not round Intermediate calculations. Enter your answer as a percentage rounded to 1 decimal place (i.e., 32.1).)

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