Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

! Required information [The following information applies to the questions displayed below.] Hult Games buys electronic components for manufacturing from two suppliers, Milan Components

image text in transcribed

! Required information [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. Total purchases (cartons) Milan 98,000 Dundee 42,000 Total 140,000 Average purchase price (per carton) $ 20.00 Number of deliveries Percentage of late deliveries 80 25% $ 22 20 $ $ 20.60 100 10% 22% The Accounting Department recorded $602,700 as the cost of late deliveries to customers. Required: Assume that the average quality, measured by the percentage of late deliveries, and prices from the two companies will continue as in the past. What is the effective price for components from the two companies when late deliveries are considered? (Do not round intermediate calculations. Round your answers to 2 decimal places.) Milan Dundee Effective Cost Per Carton

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Introduction to Accounting An Integrated Approach

Authors: Penne Ainsworth, Dan Deines

6th edition

78136601, 978-0078136603

More Books

Students also viewed these Accounting questions

Question

Do they deal with conflict among themselves?

Answered: 1 week ago

Question

Describe how we can create and sustain resonant teams. (p. 375)

Answered: 1 week ago

Question

Explain how to handle the challenges of working in groups. (p. 375)

Answered: 1 week ago

Question

Describe how HR can support effective team performance. (p. 375)

Answered: 1 week ago