Robinson Company uses Beltran Company and Southern Express Inc. to buy the electronic chip used in...

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Robinson Company uses Beltran Company and Southern Express Inc. to buy the electronic chip used in the manufacturing of its GPS device. Robinson Company has been using these two companies for several years and would like to cut down to only one supplier to purchase the 1,200,000 chips needed per year. In order to determine which supplier is the most cost effective, Robinson Company compiled the following data: Activity Testing Activity Cost $800,000 Warranty work 3,600,000 Unit purchase price Beltran Company $60 Southern Express Inc. $63 Units purchased 865,000 335,000 Testing hours 1,200 550 Warranty hours 5,000 1,400 Required: If required, round your answers to the nearest cent. When required, use rounded amounts in subsequent computations. A. Calculate the activity rate for each activity. Testing Warranty B. Calculate the cost per chip for each supplier. Beltran Company Southern Express Inc. C. Which supplier should Robinson Company choose? Robinson Company uses Beltran Company and Southern Express Inc. to buy the electronic chip used in the manufacturing of its GPS device. Robinson Company has been using these two companies for several years and would like to cut down to only one supplier to purchase the 1,200,000 chips needed per year. In order to determine which supplier is the most cost effective, Robinson Company compiled the following data: Activity Testing Activity Cost $800,000 Warranty work 3,600,000 Unit purchase price Beltran Company $60 Southern Express Inc. $63 Units purchased 865,000 335,000 Testing hours 1,200 550 Warranty hours 5,000 1,400 Required: If required, round your answers to the nearest cent. When required, use rounded amounts in subsequent computations. A. Calculate the activity rate for each activity. Testing Warranty B. Calculate the cost per chip for each supplier. Beltran Company Southern Express Inc. C. Which supplier should Robinson Company choose?