Table 4. Producer price indexes and percent changes for selected commodity groupings by final demand category Zach, a recent Penn State grad, was back on campus to discuss the challenges he faced as a buyer for Kellogg's Corn Flakes during the 2012-2014 period. The year 2012 was significant for a tremendous drought season. Grain prices skyrocketed as crop yields diminished. Then, during 2013-2014, farmers rebounded and just the opposite happened. Prices for corn and grains plummeted as the harvest was excellent. The PPI table above reflects this price volatility (fluctuations) as year over year PPI was % for grains. 2.5% 181.4 13.4% 32.3% A buyer placed an initial order with a supplier named Ronco that makes brake assemblies (units). The order was for 100 units at a per-unit price of $540. The buyer collected the following cost assumptions about Ronco: Calculate how many total labor hours will be required for volumes of 100 and 200 units respectively assuming a learning curve of 80%. 60 and 80 labor hours 500 and 1000 labor hours 500 and 800 labor hours 50 and 100 labor hours The ACME Products buyer is analyzing a supplier quote and using a break even analysis methodology. ACME has a target price per unit of $20. The buyer has estimated that the supplier has a variable cost per unit of $10 and fixed costs of $60,000. At a volume of 8,000 units what will the buyer estimate the supplier's net income to be: $160,000 $20,000 $80,000 $0