Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

[The following information applies to the questions displayed below.j JFI Foods produces processed foods. Its basic ingredient is a feedstock that is mixed with other

image text in transcribed
[The following information applies to the questions displayed below.j JFI Foods produces processed foods. Its basic ingredient is a feedstock that is mixed with other ingredients to produce the final packaged product. JFI purchases the feedstock from two suppliers, Rex Materials and Red Oak Chemicals. The quality of the final product depends directly on the quality of the feedstock. If the feedstock is not correct, JFI has to dispose of the entire batch. All feedstock in this business is occasionally "bad," so JFI measures what it calls the "yield," which is measured as, Yield Good output Input where the output and inputs are both measured in tons. As a benchmark, JFI expects to ge 11 tons of good output for every 20 tons of feedstock purchased for a yield of 55 percent ( 11 tons of output 20 tons of feedstock). Data on the two suppliers for the past year follow: Red Oak 2,280 1,578 Rex Materials Chemicals Total inputs purchased (tons) Good output (tons) Average price (per ton) 1380 1,311 $ 195 Total 3,660 2,889 $ 155 170 Required Assume that the average quality, measured by the yield, and prices from the two companies will continue as in the past. What is the effective price for feedstock from the two companies when quality is considered? (Round intermediate calculations and final answers to 2 decimal places.) Rex Materials Red Oak Chemicals Effective price per ton

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

CIA Part 1 Essentials Of Internal Auditing 2022

Authors: MUHAMMAD ZAIN

1st Edition

B09PHFC28N, 979-8794951356

More Books

Students also viewed these Accounting questions

Question

why we face Listening Challenges?

Answered: 1 week ago

Question

what is Listening in Context?

Answered: 1 week ago