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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 aggregate from

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 KC 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 $1,440 per load. A secondary inspection, which is more thorough, costs $5,375 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 $2,375.

The following are summary statistics from last year's purchases from the two suppliers.

Toorak Gravel Kilda Corp.
Number of loads 100 400
Average tons per load 10,000 5,000
Average price per ton $ 6.00 $ 5.90
Number of initial inspections passed 94 300
Number of delayed deliveries 10 80

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 2 decimal places.)

Item Toorak Gravel Kilda Corporation
Loads purchased
Average tons per load
Total tons purchased
Loads passing initial inspection
Loads delayed
Average price paid per ton
Total purchase price
Initial inspection costs
Secondary inspection costs
Delay costs
Total costs
Average effective price per ton

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