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Required Information [The following information applies to the questions displayed below.] Kinnear Plastics manufactures various components for the alrcraft and marine Industry. Kinnear buys plastic
Required Information [The following information applies to the questions displayed below.] Kinnear Plastics manufactures various components for the alrcraft and marine Industry. Kinnear buys plastic from two vendors: Tappan Corporation and Hill Enterprises. Kinnear chooses the vendor based on price. Once the plastic Is recelved, It is Inspected to ensure that it is sultable for production. Plastic that is deemed unsultable is disposed of. The controller at Kinnear collected the following information on purchases for the past year: The purchasing manager has just recelved bids on an order for 340 tons of plastic from both Tappan and Hill. Tappan bid $2,231 and Hill bld $2,209 per ton. Requlred: 1-a. Assume that the average quality, measured by the amounts discarded from the two companles, will continue as in the past. What Is the effective cost per ton for both Tappan and Hill? (Do not round Intermedlate calculations.) 1-b. Which supplier would you recommend that the purchasing manager select? Tappan HIll
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