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Required information Exercise 10-36 & 10-37 (Algo) (LO 10-3, 4) The following information applies to the questions displayed below) Hult Games buys electronic components for
Required information Exercise 10-36 & 10-37 (Algo) (LO 10-3, 4) The following information applies to the questions displayed below) Hult Games buys electronic components for manufacturing from two suppliers, Milan Components and Dundee Parts. If the components are delivered late, the shipment to the customer is delayed. Delayed shipments lead to contractual penalties that call for Hult to reimburse 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 Milan Dundee Total Total purchases (cartona) 112,000 48,000 160,000 Average purchase price per carton) $26.00 $ 28 $26.60 Number of deliveries 60 100 Percentage of lato deliveries 254 40 101 The Accounting Department recorded $492,000 as the cost of late 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 hate deliveries, and prices from the two companies will continue as in the past Required: What percentage of tate deliveries by Milon would make Hult Indifferent between buying from Milon Components and Dundee Parts? (Do not round Intermediate calculations. Enter your answer as a percentage rounded to 1 decimal place (.e., 32.1).) 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).) Percentage of late doveros
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