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The following information applies to the questions displayed below. Rex Metal Fabricators ( RMF ) buys scrap metal and produces components for buildings and other
The following information applies to the questions displayed below. Rex Metal Fabricators RMF buys scrap metal and produces components for buildings and other structures The purchase contracts specify an average quality level of percent That is percent of the metal must be ready for use without further processing. Metal that is not ready can be treated at extra cost by RMF and this is more costeffective than scrapping the metal and purchasing additional amounts. The cost of treating the metal requiring further processing is $ per ton RMF uses two suppliers : Chopin Yards and Joe Company During the past year, the purchasing quality data were as follows : Total purchases tons Average purchase price per ton Percentage requiring further processing Chopin Joe Company Total Required: Assume all else remains the same What percentage of metal from Chopin Yards that requires further processing would make Rex Metal Fabricators Indifferent between buying from Chopin Yards and Joe Company Note: Enter your answer as a percentage rounded to decimal place ie as
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