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Roscoe Construction Company ( RCC ) is a company specializing in building roads and highways. As a part of its business, it receives supplies of
Roscoe Construction Company RCC is a company specializing in building roads and highways. As a part of its business, it receives
supplies of aggregate from two suppliers: Toorak Gravel TG and Kilda Corporation KC RCC purchasing has expressed a preference
for based on price, but occasionally has to order from TG when KC cannot fill the order.
RCC has recently had problems with the quality and the timeliness of deliveries. When a supplier delivers a load to RCC it goes
through an initial inspection to assure it meets specification. If the load fails the initial inspection, it goes through a secondary
inspection to determine the exact issue. Almost always, the issue can be resolved and the load can be used. The initial inspection
costs $ per load. A secondary inspection, which is more thorough, costs $ per load. If a delivery is delayed, RCC has to hire
temporary workers or pay overtime to some employees. The average cost of a delayed load is $
The following are summary statistics from last year's purchases from the two suppliers.
Required:
Calculate the effective cost of a ton of aggregate from the two suppliers, assuming that last year's experience is representative.
Round "Average price paid per ton" & "Average effective price per ton" answers to decimal places.
Answer is complete but not entirely correct.
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