Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. required: a. assume all else remains the same. wha

Required: a. Assume all else remains the same. What bid by Tappan would make Kinnear...

60.1K

Verified Solution

Question

Accounting

image

Required:

a. Assume all else remains the same. What bid by Tappan would make Kinnear indifferent between buying from Tappan or Hill? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Kinnear Plastics manufactures various components for the aircraft and marine industry. Kinnear buys plastic from two vendors: Tappan Corporation and Hill Enterprises. Kinnear chooses the vendor based on price. Once the plastic is received, it is inspected to ensure that it is suitable for production. Plastic that is deemed unsuitable is disposed of. The controller at Kinnear collected the following information on purchases for the past year: Tappan Hill Total purchases (tons) Plastic discarded 5,500 8,000 165 480 The purchasing manager has just received bids on an order for 340 tons of plastic from both Tappan and Hill. Tappan bid $2,231 and Hill bid $2,209 per ton. value: 2.00 points Required information Required: 1-a. Assume that the average quality, measured by the amounts discarded from the two companies, will continue as in the past. What is the effective cost per ton for both Tappan and Hill?(Do not round intermediate calculations.) Tappan Hill Effective cost per ton

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students