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please answer both questions Morgan wants to have a new roof built. She has contacted three companies. All companies have very similar prices in terms
please answer both questions
Morgan wants to have a new roof built. She has contacted three companies. All companies have very similar prices in terms of labor and materials. Company 1 offered a material loading percentage of 68%. Company 2 offered a percentage of 54%. And Company 3 offered a percentage of 38%. Which one should Morgan choose? Company 1, because if the labor and materials are the same for all three, then she needs to find the company with the highest material loading percentage in order to get the most affordable price. Company 2 because a material loading percentage should be between 51% and 58% for it to be considered acceptable. Company 3, because if the labor and materials are the same for all three, then she needs to find the company with the lowest material loading percentage in order to get the most affordable price Company 2 or 3, because any material loading percentage over 55% is considered to be too high, regardless of what the cost of materials and labor amount to. The Wheel Division of Speedy Skateboards operates at full capacity, manufacturing 700,000 wheels per year and selling them to outside customers for $10.75 each. The division's variable cost per wheel is $4.85, Speedy's Consumer Board Division needs a new, extra-durable wheel that it cannot purchase from any outside supplier. Thus, Speedy's upper management has requested that the Wheel Division manufacture 200,000 of these wheels and sell them to the Consumer Board Division. Based on its calculations, the Wheel Division decides on a minimum transfer price of $13.10 per wheel. This means that the division expects its variable costs per specialty wheel to be $2,35 $7.20 $8.25 $5.90 Step by Step Solution
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