Lean PrinciplesSoft Glow, Inc.manufactures light bulbs. Its purchasing policy requires that thepurchasing agents...Lean PrinciplesSoft...

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Accounting

Lean Principles
Soft Glow, Inc.manufactures light bulbs. Its purchasing policy requires that thepurchasing agents place each quarter's purchasing requirements outfor bid. This is because the Purchasing Department is evaluatedsolely by its ability to get the lowest purchase prices. The lowestbidder receives the order for the next quarter (90 workingdays).
To make its bulbproducts, Soft Glow requires 45,000 pounds of glass per quarter.Soft Glow received two glass bids for the third quarter, asfollows:
Mid-States GlassCompany: $28.00 per pound of glass. Delivery schedule: 45,000(500 lbs. x 90 days) pounds at the beginning of July to last for 3months.
Cleveland GlassCompany: $28.20 per pound of glass. Delivery schedule: 500pounds per working day (90 days in the quarter).
Soft Glow acceptedMid-States Glass Company's bid because it was the low-cost bid.
Required:
1.All of the following are ways in which Soft Glow could developlong-term partnerships with its suppliers except:
a. share research anddevelopment efforts.
b. ignore internalcosts caused by delivery delays while contracting on the best pricepoint basis.
c. share productionschedules.
d. establishelectronic data interchange.
e. establish supplierraw materials logistical support.
b
2.All of the following statements are true regarding the hidden costsbeyond the price of Mid-States Glass Company's bidexcept:
a. They are easy todetermine, yet often overlooked.
b. They ignoreadditional internal costs of the higher inventory imposed byMid-States Glasses' delivery schedule.
c. The hidden costsare incurred by other parts of the organization, notpurchasing.
d. The hidden costsinclude costs for additional space and handling.
e. The hidden costsinclude costs of obsolescence and financing.
a
3.Considering just inventory financing costs, what is tThe additionalcost per pound of Mid-States Glass Company's bid if the annual costof money is 10%? Round to the nearest cent.
$ per lb.
This question waspreviously answered $0.7 per pound which is incorrect so please donot respond with that answer. I hope not to waste even morequestions asked. Thanks.

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In: AccountingLean PrinciplesSoft Glow, Inc.manufactures light bulbs. Its purchasing policy requires that thepurchasing agents...Lean PrinciplesSoft Glow, Inc.manufactures light bulbs. Its purchasing policy requires that thepurchasing agents place each quarter's purchasing requirements outfor bid. This is because the Purchasing Department is evaluatedsolely by its ability to get the lowest purchase prices. The lowestbidder receives the order for the next quarter (90 workingdays).To make its bulbproducts, Soft Glow requires 45,000 pounds of glass per quarter.Soft Glow received two glass bids for the third quarter, asfollows:Mid-States GlassCompany: $28.00 per pound of glass. Delivery schedule: 45,000(500 lbs. x 90 days) pounds at the beginning of July to last for 3months.Cleveland GlassCompany: $28.20 per pound of glass. Delivery schedule: 500pounds per working day (90 days in the quarter).Soft Glow acceptedMid-States Glass Company's bid because it was the low-cost bid.Required:1.All of the following are ways in which Soft Glow could developlong-term partnerships with its suppliers except:a. share research anddevelopment efforts.b. ignore internalcosts caused by delivery delays while contracting on the best pricepoint basis.c. share productionschedules.d. establishelectronic data interchange.e. establish supplierraw materials logistical support.b2.All of the following statements are true regarding the hidden costsbeyond the price of Mid-States Glass Company's bidexcept:a. They are easy todetermine, yet often overlooked.b. They ignoreadditional internal costs of the higher inventory imposed byMid-States Glasses' delivery schedule.c. The hidden costsare incurred by other parts of the organization, notpurchasing.d. The hidden costsinclude costs for additional space and handling.e. The hidden costsinclude costs of obsolescence and financing.a3.Considering just inventory financing costs, what is tThe additionalcost per pound of Mid-States Glass Company's bid if the annual costof money is 10%? Round to the nearest cent.$ per lb.This question waspreviously answered $0.7 per pound which is incorrect so please donot respond with that answer. I hope not to waste even morequestions asked. Thanks.